Use the following information to answer the given question
The department of Administration of Odi Naka Chukwu State Water Corporation has underlisted staff position on 31st December, 1993
\(\begin{array}{c|c} Post & Grade & \text{Number in post} & Rate \\ \hline - & - & - & - \\ \text{Director of Audit} & 16 & 1 & \text{N200,000 x N20,000 - N3000,000} \\ \text{Assistant Director (Audit)} & 15 & 2 & \text{N160,000 x N18,000 - N268,000} \\ \text{Asst. Chief Internal Auditor} & 13 & 1 & \text{N140,000 x N12,000 - N224,000} \\ \text{Internal Auditor II} & 08 & 2 & \text{N60,000 x N6,000 - N120,000} \\ \text{Higher Executive Officer (Audit)} & 08 & 4 &\text{N60,000 x N6,000 - N120,000}\end{array}\)
NOTE: (a) All employees are on the first step of their salary
(b) \(\begin{array}{c|c} \text{Grade level} & \text{Housing allowance} & \text{Transport Allowance} \\ \hline \text{12 and above} & \text{N24,000 p.a} & \text{N18,000 p.a} \\ \text{07 to 11} & \text{N18,000 p.a} & \text{N12,000 p.a} \end{array}\)
The total basic salary for the period is
To calculate the total basic salary for the period, we need to multiply the number of staff in each post by their corresponding rate and then add up the results. The rates are given in the table as the product of the monthly salary and the number of steps on the salary scale. To simplify the calculation, we will first compute the monthly salary for each post as follows:
- Director of Audit: N200,000 x 12 months = N2,400,000 per year
- Assistant Director (Audit): N160,000 x 12 months = N1,920,000 per year
- Asst. Chief Internal Auditor: N140,000 x 12 months = N1,680,000 per year
- Internal Auditor II: N60,000 x 12 months = N720,000 per year
- Higher Executive Officer (Audit): N60,000 x 12 months = N720,000 per year
Next, we need to compute the housing and transport allowances for each post, based on the grade levels given in the table. All employees are on the first step of their salary, so they are all eligible for the same allowances:
- Housing allowance: N24,000 per year
- Transport allowance: N18,000 per year for grades 12 and above, and N12,000 per year for grades 7 to 11
Using this information, we can compute the total basic salary for each post as follows:
- Director of Audit: N2,400,000 + N24,000 + N18,000 = N2,442,000 per year
- Assistant Director (Audit): N1,920,000 + N24,000 + N18,000 = N1,962,000 per year
- Asst. Chief Internal Auditor: N1,680,000 + N24,000 + N12,000 = N1,716,000 per year
- Internal Auditor II: N720,000 + N24,000 + N12,000 = N756,000 per year
- Higher Executive Officer (Audit): N720,000 + N24,000 + N12,000 = N756,000 per year
Finally, we need to multiply the total basic salary for each post by the number of staff in that post and add up the results:
N2,442,000 x 1 + N1,962,000 x 2 + N1,716,000 x 1 + N756,000 x 2 + N756,000 x 4 = N1,020,000
Therefore, the total basic salary for the period is N1,020,000.
