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

Costs and cost behaviour — practice question

An employee is paid at an hourly wage of $8$ for a $40$-hour week. She is given a bonus equal to $30\%$ of the hourly rate for every unit made in time saved. The planned production time is $30$ minutes per unit. In the previous week, she worked $40$ hours and completed $90$ units. Calculate her gross earnings for the week.

  • A$320$
  • B$332$
  • C$360$
  • D$416$

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