I don’ understand why they multiply dir. labour with 0,15? Thanks
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Bpp practice kit,question 18.6
Sorry - I really do want to help - but it seems that you must be using a past edition of the BPP Kit (because there is no question 18.6 in the current edition. Question 18 is a full question.)
I would guess that the question you are referring to is in the current edition somewhere but with a different number. If you type the first few words of the question then I will try and find it.
A manufacturing company has the following monthly budget
sales 480,000
dir.mat 140,000
dir.labour 110,000
VO 50,000
FO 130,000
profit 50,000
Hope you will find it, thanks
I have found it :-)
It is because the sales are higher by 15% and so if they sell and produce 15% more, then they will need 15% more labour hours (and those extra 15% hours will need to be paid at the higher pay, so 50% more for these hours).
Thanx
You are welcome :-)
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