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

Costs and cost behaviour — practice question

A manufacturer uses a bonus system. He gives the following details. output needed from each worker: 175 units time permitted to finish output: 10.5 hours actual time taken by Fred: 7 hours A bonus equal to 25% of the labour costs for time saved is paid, as well as the hourly rate of $8.75. What amount did Fred earn for producing 175 units?

  • A$68.91
  • B$76.56
  • C$91.88
  • D$99.53

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