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

Costs and cost behaviour — practice question

An employee receives basic pay at the hourly rate of $20$ for an $8$-hour working day. Any overtime is remunerated at the hourly rate of basic pay plus $25\%$ (time and a quarter). A productivity bonus is also paid at the hourly rate of basic pay plus $50\%$ (time and a half) for each unit produced above $30$ units per day. On Wednesday, the employee worked for $10$ hours and produced $32$ units. What was the employee’s gross pay for Wednesday?

  • A$210$
  • B$220$
  • C$270$
  • D$310$

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