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

Costs and cost behaviour — practice question

Adam receives $4 per hour, and his expected output is 500 units per week. He is also given a bonus of $1 for every 20 perfect units produced above 500. In one week he worked for 40 hours and produced 880 units, but 40 were faulty and were scrapped. How much was Adam paid for the week?

  • A$177
  • B$179
  • C$202
  • D$204

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