[nouman]

Thanku:)

[nouman]

Plz answer:
A company needs 5,000 hours of labour for a contract they have been asked to quote for. The work currently being carried out by our employees is generating a contribution of $12 per hour, although there is currently a substantial amount of idle time. Our workers are paid at the rate of $8 per hour. What is the relevant cost of the labour required for the contract?
A NIL
B $40,000
C $60,000
D $100,000

I notes chapter 9, mcq no 3 answer is B .shouldnt it be A

[nouman]

Thankü

[nouman]

If in 1st question its was given that variable overheads are $22 per labour hour .Will u use it in calculating relevant cost?

[nouman]

The options 2 and 4 are correct so the answer is B right?

[Author]

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