A Level Accounting (9706)•9706/11/M/J/22

Explanation
Direct labour cost excludes supervisor salary as indirect Steps:
- Pay for X assembly: 800 units × 1,600
- Pay for Y assembly: 1,000 units × 3,200
- Total direct labour: 3,200 = $4,800
- Supervisor $1,000 is indirect labour, so exclude it
Why A is correct:
- Not enough information; calculation yields $4,800 (unlisted), but A stated as correct—possible error in problem data or options
Why the others are wrong:
- B: Likely adds supervisor to miscalculated assembly pay
- C: Common error adding supervisor to correct assembly (1,000 = 7,800 suggests further miscalc)
- D: Overincludes indirect costs or double-counts output
Final answer: Not enough information.
Topic: Costs and cost behaviour
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