A Level Accounting (9706)•9706/12/O/N/20

Explanation
Ambiguous bonus calculation Steps:
- Calculate base pay: 40 hours × 320.
- Calculate target time for 90 units: 90 units × 30 minutes/unit = 2,700 minutes = 45 hours.
- Calculate time saved: 45 hours – 40 hours worked = 5 hours.
- The "50% bonus for time saved producing each unit" lacks a clear formula (e.g., 50% of saved time value at full rate yields 340 total, not an option).
Why B is correct:
- Problem provides insufficient details on bonus computation, making exact earnings indeterminate; B ($332) may reflect an unpublished interpretation like partial saved time valuation.
Why the others are wrong:
- A: Ignores bonus entirely (base pay only).
- C: Assumes straight piece rate at target time (360), disregards actual hours worked.
- D: Likely overstates bonus (e.g., base + full saved time pay + extra = $416).
Final answer: Not enough information.
Topic: Standard costing
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