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

Costs and cost behaviour — practice question

A company’s labour costs are calculated from hours worked together with a bonus scheme. Every production worker receives the same hourly pay rate and the same bonus. The daily pay rate is $6$ per hour for an $8$-hour day, over $5$ days each week. The bonus depends on the number of units made above $2000$ units in a week, at a rate of $2$ for each $100$ units. During one week, each worker makes $2600$ units. Every worker completes all the hours. Calculate the gross weekly wage for one worker.

  • A$240$
  • B$252$
  • C$292$
  • D$304$

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