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

Costs and cost behaviour — practice question

An employee is on a $40$-hour working week and earns $\$8$ per hour. For each unit made in less time than the target, she is paid a bonus equal to $30\%$ of the hourly rate for the time saved. The target production time is $30$ minutes per unit. In the previous week, she worked for $40$ hours and made $90$ units. What was her total pay for that week?

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

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