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

Costs and cost behaviour — practice question

A business has 20 production workers. Each worker is employed for 40 hours per week and is paid at $7.80 per hour. Piece rate is worked out as 20% of the basic hourly rate for every item made beyond 120 units per employee. During one week, each employee made 145 units. What were the total wages for the week?

  • A$7020
  • B$9984
  • C$10764
  • D$10920

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