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KIT QUESTION SEC B

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › KIT QUESTION SEC B

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 3, 2022 at 6:29 pm #667806
    Safiya.12345
    Participant
    • Topics: 63
    • Replies: 113
    • ☆☆

    100 hours of skilled and 56 hours of unskilled labour will be required for the upholstery and
    flooring work. Skilled labour is paid the market rate of $25/hour and is currently fully
    employed on another job, where they earn a contribution of $6/hour. Alternatively new
    skilled labour could be employed, but the new workers will require training at a cost of
    $14/hour for the first 10 hours they are working.
    Unskilled workers are currently paid $12/hour and each of the 5 workers is guaranteed a
    minimum wage of $420 per week. Each unskilled employee has enough work allocated to
    them for the next three weeks to earn $372 per week. The work to be done by the unskilled
    labour on Bow must be completed within the first week of the project starting and overtime
    is paid at time and half.

    October 3, 2022 at 6:31 pm #667807
    Safiya.12345
    Participant
    • Topics: 63
    • Replies: 113
    • ☆☆

    The unskilled workers are guaranteed work for $420/$12 = 35 hours.
    They are currently working $372/$12 = 31 hours. Therefore there are 4 hours per week
    per worker spare capacity. There are 5 workers therefore 20 hours a week will have
    no cost, leaving 36 hours to be paid for at time and a half.
    36 × $12 × 1.5 = $648

    October 3, 2022 at 6:35 pm #667808
    Safiya.12345
    Participant
    • Topics: 63
    • Replies: 113
    • ☆☆

    Hello Sir
    I m unable to understand a. how did they calculate 36 hours as overtime
    b. I didn’t understand how dividing 2 costs could give the hours paid for 372/12= 31 hours since there is 4 hours spare time how is it costed as overtime
    your explanation would be helpful thank you so much .

    October 4, 2022 at 11:19 am #667843
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53175
    • ☆☆☆☆☆

    The 56 hours required must all be worked in the first week.

    Each worker currently has 4 hours a week free (so 20 hours in total) and these 20 hours will not be paid as overtime.

    However the remaining 56 – 20 = 36 hours are not free time and so they will have to be paid as overtime.

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