mMCQ.

Navigation Menu

Step into mMCQ.

Launch mMCQ. diagnostic

Explore mMCQ.

MDCAT prepFree DiagnosticPricing & SubscribeSign in

Resources

Terms & Conditions

mMCQ.

© 2021 - 2025 mMCQ.All rights reserved.

WhatsApp
A Level Accounting (9706)•9706/13/O/N/22
Question 23 from 9706/13/O/N/22

Explanation

Factory labor cost requires distinguishing regular vs. overtime hours, which is missing Steps:

  • Basic rate is 10/hourforregularhours;overtimeat10/hour for regular hours; overtime at 10/hourforregularhours;overtimeat15/hour (1.5x basic).
  • Total hours worked = 1500, but no breakdown of regular vs. overtime hours provided.
  • Basic pay = regular hours × 10;overtimepay=overtimehours×10; overtime pay = overtime hours × 10;overtimepay=overtimehours×15.
  • Bonus = 10% of basic pay since actual production (15,000 units) > target (12,000 units).
  • Total cost = (regular × 10)+(overtime×10) + (overtime × 10)+(overtime×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 (15,000+15,000 + 15,000+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

Practice more A Level Accounting (9706) questions on mMCQ.me