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Hi sir,
I could not solve this questionBudgeted production for the next month is 8200 units. Each unit requires 6 hours to make and labour is paid $15 per hour. Idle time represents 10% of the total time paid.
What is the total budgeted labour cost for next month?Thank you
I will answer, but in future if you wish me to answer then you must ask in the Ask the Tutor Forum – this forum is for students to help each other.
Since the idle time is 10% of the time paid, it means that for every 100 hours they pay, they will be idle for 10 hours, and will only work for 90 hours.
Or…saying it the other way round, for every 90 hours of work they need to pay for 100 hours.In this question they need to work 8,200 x 6 hours = 49,200 hours.
Therefore they need to pay for 49,200 x 100/90 hours.Now you should be able to calculate the answer.
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