A Level Accounting (9706)•9706/12/M/J/21

Explanation
Calculate regular, overtime, and bonus pay Steps:
- Regular pay for 7 hours: 7 × 140
- Overtime for 3 hours at time and a quarter (1.25 × 25/hour): 3 × 75
- Bonus for 2 excess units at time and a half (30 = $60
- Total earnings: 75 + 275 Why D is correct:
- D equals the sum of regular pay, overtime at 1.25 times basic rate, and bonus at 1.5 times basic rate per excess unit, per the pay structure. Why the others are wrong:
- A. $175: Ignores overtime premium and bonus entirely.
- B. $200: Treats all 10 hours at basic rate, skipping overtime and bonus.
- C. $215: Includes regular and overtime but excludes bonus for excess units. Final answer: D
Topic: Costs and cost behaviour
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