A Level Accounting (9706)•9706/11/O/N/19
Explanation
Basic pay per employee for standard workweek Steps:
- Standard workweek is 40 hours per employee.
- Basic rate is $20 per hour.
- Calculate basic pay: 40 hours × 800 per employee.
- Production and bonus details do not affect basic pay calculation.
Why A is correct:
- Basic pay uses the standard 40-hour workweek formula: hours worked × hourly rate.
Why the others are wrong:
- B. $945: Includes unshared bonus or misapplies excess units to hourly rate.
- C. 30/hour for 35 hours.
- D. $200: Refers to standard production threshold, not pay.
Final answer: A
Topic: Costs and cost behaviour
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