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Labour costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labour costing

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 6, 2020 at 2:28 am #597808
    applessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    7.10
    Jane works as a member of a three-person team in the assembly department of a factory. The team is rewarded by a group bonus scheme whereby the team leader receives 40 per cent of any bonus earned by the team, and the remaining bonus is shared evenly between Jane and the other team member. Details of output for one day are given below.
    Hours worked by team
    Team production achieved
    Standard time allowed to produce one unit Group bonus payable at $6 per hour
    What is the bonus element of Jane’s pay for this particular day?
    A $5.04 B $7.20 C $10.08 D $16.80

    Sir I don’t understand how C is the wrong answer
    I got the total bonus correctly which was 16.8

    But after that when I tried to do this

    =16.8*60%*

    It was apparently wrong and they have also multipied with 50%(which I have no idea where it came from)

    December 6, 2020 at 10:36 am #597838
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    The question says that the remaining bonus is shared evenly between Jane and the other team member. So Jane gets 50% of it.

    December 6, 2020 at 12:18 pm #597864
    applessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    Sir isn’t that the 60% we have already put in the equation

    40+((100-40)/30)=60%

    We already split it into 3 people when we did removed when we tried to find the rest of the balance other than 40%

    I have a feeling I did a wrong approach to get the 60%

    Please help me get the correct approach sir

    December 6, 2020 at 3:52 pm #597893
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    There are 3 people in the team.

    The leader gets 40%. That leaves 60% to be shared equally between Jane and the other person.

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