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accounting for labour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › accounting for labour

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • October 19, 2019 at 1:15 pm #550177
    mariamohi
    Participant
    • Topics: 11
    • Replies: 25
    • ☆

    sir, if the questions asks what would result in an increase in total cost for labour

    options

    additional labour employed
    a department which is at full capacity switching from one production of one product to another

    the answer in the books is that only statement 1 is correct

    but sir if we switch to production of an item which takes a longer time to produce , meaning more hours than labour will be automatically paid more because of the extra hours?

    October 20, 2019 at 9:20 am #550229
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    The department is working at full capacity and therefore they cannot work more hours. (If the new product takes longer to produce then it means they will produce fewer of the product, not work more and therefore not pay more.)

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