[aksdwi]

i got it skilled labour 38/4 $10contribution per hour
thank you

[aksdwi]

i cant understand 38.50 now

[aksdwi]

Emerdale has been asked to quote a price for a one-off contract. The following info is available.

Materials:
The contract requires 3000kg of material K, which is used regularly by the company in other production. The company has 2000 kg currently in stock, which had been purchased last month for a total cost of $19,600. Since then the price per kg for material K has increased by 5%.

The contract also requires 200kg of material L. There are 250kg of material L in stock which are not required for normal production. This material originally cost a total of $3125. If not used on this contract, the stock of material L would be sold for $11 per kg.

Labour:
The contract requires 800 hours of skilled labour. Skilled labour is paid $9.50 per hour. There is a shortage of skilled labour and all the available skilled labour is fully employed in the company in the manufaccture of product P. The following information relates to product P.
Selling price per unit $100
Less skilled labour $38
Other variable costs $22

Required: Prepare on a relevant cost basis, the lowest cost estimate that could be used as the basis for a quotation.

[aksdwi]

i dont understand where does $10/hour of contribution comes from

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