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

Costs and cost behaviour — practice question

An employee receives basic pay of $20$ per hour for a seven-hour working day. Any overtime is paid at time and a quarter (basic pay plus $25\%$). In addition, for every unit made above eight units per day, a bonus is paid at time and a half (basic pay plus $50\%$). On Monday, the employee worked $10$ hours and made $10$ units. What were the employee's total earnings on Monday?

  • A$175$
  • B$200$
  • C$215$
  • D$275$

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