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A company has a budget for 2 products A and B as follows:
sales units : (product A:2000) (product B: 4500)
production units: (product A: 1750) (product B: 5000)Labour:
skilled at $10/hour: (product A: 2hours/unit) (product B: 2hours/unit)
unskilled at $7/hour: (product A: 2hours/unit) ( product B: 4 hours/unit)What is the budgeted cost for unskilled labour for the period?
A. $105000
B. $135000
C. $160500
D.$252500the correct answer is C
However i have got $164500, I have 1750 units x 2 hours= 3500 hours for product A and 5000 x 4 hours= 20000 hours for product B. Then 3500+20000=23000 hours x $7= $164500
I would be grateful if you, sir, could help me and tell me my mistake.
The answer is indeed $164,500 !!
In which book did you find this question, because unless you have copied it incorrectly there is a typing mistake in the choice of answers.
Does the book not show workings with their answers?Yea I have checked and there is an incorrect typing of answers.It was actually $164500. Thank you sir.
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