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

Costs and cost behaviour — practice question

A team consists of eight employees. Every employee earns $16 an hour, and the team also divides a collective bonus between them, which depends on their output of product. For output above 500 units, the team, as a group, receives a bonus of $8 per unit. This bonus is shared equally and paid weekly. In the previous week, each team member worked 40 hours, and the team altogether made 560 units. What is the pay of each member of the team?

  • A$700
  • B$760
  • C$1120
  • D$1200

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