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

Explanation

Direct labour cost excludes supervisor salary as indirect Steps:

  • Pay for X assembly: 800 units × 2/unit=2/unit = 2/unit=1,600
  • Pay for Y assembly: 1,000 units × 3.20/unit=3.20/unit = 3.20/unit=3,200
  • Total direct labour: 1,600+1,600 + 1,600+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 (4,800+4,800 + 4,800+1,000 = 5,800,butoption5,800, but option 5,800,butoption7,800 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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