A Level Accounting (9706)•9706/13/O/N/22

Explanation
Factory labor cost requires distinguishing regular vs. overtime hours, which is missing Steps:
- Basic rate is 15/hour (1.5x basic).
- Total hours worked = 1500, but no breakdown of regular vs. overtime hours provided.
- Basic pay = regular hours × 15.
- Bonus = 10% of basic pay since actual production (15,000 units) > target (12,000 units).
- Total cost = (regular × 15) + 0.1 × (regular × $10), but cannot compute without overtime hours.
Why B is correct:
- Not enough information to calculate exact cost; B may represent an incomplete basic pay estimate (e.g., assuming partial hours), but full computation impossible.
Why the others are wrong:
- A assumes no overtime and adds bonus to full 1500 hours (1,500), ignoring missing overtime data.
- C and D likely include assumed overtime or misapplied bonus, exceeding minimum possible cost without overtime details.
Not enough information. Final answer: Not enough information.
Topic: Costs and cost behaviour
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