A Level Accounting (9706)•9706/13/O/N/19

Explanation
Standard daily hours ambiguous for overtime
Steps:
- Calculate bonus: 25 units produced - 20 standard units = 5 excess units × 20.
- Basic pay: $15/hour × standard daily hours (unspecified).
- Overtime pay: (10 - standard hours) × $15 × 1.25.
- Total pay = basic pay + overtime pay + $20 bonus.
- Not enough information on standard daily hours to compute total.
Why A is correct:
- Not enough information to verify exact pay; A assumes a specific standard (e.g., ~4 hours) yielding ~$192, but problem lacks definition.
Why the others are wrong:
- B assumes erroneous 25% premium on daily basic (20 = $200).
- C overcounts bonus or hours (e.g., all 25 units at 100 + inflated hours).
- D greatly overcounts (e.g., 20 hours basic or full bonus on all units).
Final answer: A
Topic: Costs and cost behaviour
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