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

Costs and cost behaviour — practice question

A manufacturer uses a bonus system and provides the following details. output needed from each worker $175$ units time permitted to complete output $10.5$ hours actual time spent by Fred $7$ hours A bonus of $25\%$ of the labour costs for time saved is paid, in addition to the hourly rate of $8.75$. How much did Fred receive for producing $175$ units?

  • A$68.91
  • B$76.56
  • C$91.88
  • D$99.53

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