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

Costs and cost behaviour — practice question

The total production wages paid during the year were $\$257\,000$. Indirect wages accounted for $30\%$ of the total. Direct workers were scheduled to complete $15\,000$ hours, but they actually completed only $13\,000$ hours. There were no overtime payments or bonus payments. What is the hourly rate of pay for direct labour?

  • A$\$5.14$
  • B$\$5.93$
  • C$\$11.99$
  • D$\$13.84$

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