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Question - Pak Alco. Employees 40 workers and it pays $7.00 per hour to its production workers for a 35 hours week. Overtime is paid at time and a quarter. In the current week of April, all the workers worked for 38 hours. Due to machine breakage, there is 3 hours of idle time this week for all workers. Each unit of the product takes an average of 3 hours.
Employees National Insurance Contribution for the week was $28 and Employers National Insurance Contribution for the week was $31. Income tax is to be deducted was $55 per worker.
Required -
a) Calculate the net pay of employee.
b) What is the total labour Cost to the employer for this week?
c) Why is that the labour cost is more than wages received by the workers? Explain with reasons.
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