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

Costs and cost behaviour — practice question

A firm pays staff $\$6.80$ for each hour in a standard $40$-hour week. Overtime is paid at a premium of $50\%$, and there is also a production bonus of $\$0.25$ for every unit made above $350$. Staff are assured of a weekly wage of $\$330$. One employee worked for $45$ hours in the previous week and made $410$ units. Calculate the employee’s gross pay for that week.

  • A$330$
  • B$338$
  • C$372$
  • D$474$

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