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Hi everyone~
I’m a newcomer in this website, I’m facing problem in F2- axamination- question 7, If you have time, plz kindly have a look for me 😀
Following information in that question, Firstly,I calculated variable cost per unit
because standard time for each unit is 3 minutes, so in 1 hour, piecework can create 20 units
variable cost: $18:20(unit)=0.9($/unit)
The organisation also guarantees its employees 80% of time based that mean total fix cost is: 80% *$20=$16
Total cost must be : 0.9*200+16=$196
But poor me, that result is not matching with any result that website provied :(( and actually, I dont know why…………
plz plz plz help me……….Thankyou guy so much ^^Yes, That question 7 from F2 Course Notes- Chapter 4 : Cost classification
The content: An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-based rate of pay which is based on $20 per hour for an eight hour working day. Three minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour
If an employee produces 200 units in eight hours on a particular day, what is the employee’s gross pay for that day?The guaranteed pay is not extra pay. What is means is that they will be paid either the piece work rate or the guaranteed amount – whichever is the higher. They are guaranteed to receive at least the time based pay.
(Have you checked the answer at the back of the course notes?)
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