Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A production worker receives $15$ per hour for an $8$-hour day. Overtime is paid at the rate of time and a fifth, which means basic pay plus $20\%$. There is also a productivity bonus of $21$ per unit for every unit made above $12$ units per day. Last Friday, the production worker was at work for $12$ hours and put together $14$ units. Calculate how much he earned on Friday?

  • A$144
  • B$162
  • C$192
  • D$234

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