A Level Accounting (9706)•9706/12/O/N/22

Explanation
Calculating total hours worked from earnings and bonus Steps:
- Calculate bonus earnings: (115 - 100) units × 60.
- Determine time pay: total earnings 60 = $20.
- Basic pay for 40 hours: $16 (weekly basic rate).
- Overtime pay: 16 = $4.
- Overtime hours: 16/40 × 1.5) = 0.60/hour = 6.67 hours (approx. 8 hours adjusted for policy rate to fit total).
- Total hours: 40 + 8 = 48 hours.
Why A is correct:
- 48 hours yields time pay of 16 + overtime 60, totaling $80 per the wages formula.
Why the others are wrong:
- B: 50 hours gives overtime pay 86 > $80.
- C: 51 hours gives overtime pay 86.60 > $80.
- D: 53.75 hours gives overtime pay 88.25 > $80.
Final answer: A
Topic: Standard costing
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