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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Costing + Labour
Dear Sir: Could you please help me understand the following questions.
Question 1: A van delivered wood to two firms in a week. The following details are available.
Firm Weight of Wood Delivered Distance Covered
KG KM
P 200 250
Q 500 800
The van cost $675,000 to operate for the week. Each delivery was carried separately and there were no other deliveries during the week.
What is the cost per kilogram/kilometre of wood delivered in the week (to the nearest $0.01)?
Question 2: A company operates a piecework system of remuneration, but also guarantees its employees a minimum wage of $10 per hour for an 8 hour day.
The standard time allowed per unit for output is 4 minutes. Piecework is paid at the rate of $12 per hour.
If an employee produces 150 units on a particular day, what will be their total pay for that day?
Best Regards,
The total cost was $675000
The kg/km for P was 200 X 250
The kg/km for Q was 500 x 800
You can multiply them and then add to get the total kg/km.
If you divide 675,000 by the total kg/km then you will get the cost per kg/km.
For question 2, they produced 150 units. The total standard time is therefore 150 x 4/60 hours, and the total piecework pay is therefore 150 x 4/60 a $12.
The total pay will be the larger of the piecework pay (calculated as above) and the minimum wage of 8 x $10.
Thank you Sir, both questions are clear now.
Thats great 🙂