1. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–1 This is the prescribed textbook for your course. Available NOW at your campus bookstore!

2. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–2 Labour— control and accounting Chapter 5

3. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–3 Payroll The total system for paying and recording wages to employees –Maintain permanent pay records –Ensure cost-effective and accurate timekeeping procedures –Maintain pay records –Analyse and allocate costs –Account for labour-related oncosts

4. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–4 Other payroll procedures Calculate tax Determine other deductions Record individual payroll Calculate notes and coins required Prepare pay slips

5. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–5 Monthly payroll procedures Determine total PAYG withheld Determine other deductions Record payroll Calculate employer’s contribution to superannuation and remit Remit other deductions made Remit state payroll tax

6. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–6 Payroll recording Gross pay Holiday pay Sick pay Pay deductions

7. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–7 Labour analysis Direct labour Indirect labour Overtime premium

8. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–8 Labour-related costs Annual leave Sick leave Payroll tax Workers’ compensation insurance Superannuation Long-service leave

9. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–9 Accounting for labour-related costs Debit factory overhead when the actual costs are paid Include budgeted annual costs for labour-related costs Accrue or provide for costs such as annual, sick and long-service leave Calculate a rate per hour to debit work in process and factory overhead

10. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–10 Recovery of labour-related costs Charge the product or service directly with the estimated oncosts as well as the normal direct labour charge Use predetermined rates per hour

11. PPTs t/a Management Accounting 2e by Banks & Neish. © 2003 McGraw-Hill Australia. Slides prepared by Peter Miller 5–11 Chapter 6 Factory overhead— control and accounting Discusses