accounting for labour

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October 19, 2019 at 1:15 pm #550177
mariamohi
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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
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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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