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Hi Sir John,
I have a problem in solving this question from open tuition mock question.
(Question)
Budgeted production next month is 8200 units. Each unit required 6 labour hour to make. Labour is paid $15 per hour and idle time represent 10% of the total time paid. what is the total budgeted labour cost for next month.Thank you for your time.
The answer could b 820,000.as the total labour cost is (8200*6*15)=738000
10%idle time means 90% is used
So the equation should b 738000*100/90=820000Mercy: Farzana is correct, but if you want me to answer questions then you should ask in the Ask the Tutor Forum – this forum is for students to help each other.
Thank you Sir John, you are the best lecturer I have heard in my entire life. I am clear with Farzana answer, my mistake was calculating idle time wrongly. Also, I apologise for posting question on wrong forum.
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