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

Costs and cost behaviour — practice question

A company pays its staff on a time-rate basis of $8$ for each hour worked. It also gives a weekly bonus of $1.20$ for every unit of production above $100$ units, and an extra $0.80$ for every unit of production above $120$ units. Staff are assured a minimum weekly wage of $335$. One employee worked $37.5$ hours last week and produced $129$ units. Calculate the employee’s wage for that week.

  • A$335.00$
  • B$342.00$
  • C$358.00$
  • D$365.20$

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