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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › relevant cost of labor
My Dear Tutor,I have a question.
A special job would require 50 hours of labor time.Employees are paid $10 per hour.There is sufficient idle capacity among the workforce for 40 hours of the work.The extra ten hours would be worked in overtime for which the additional pay is 12.50 per hour.
My Dear tutor, it says it requires 50 hours and 40 is spent but 10 is remaining why should i consider 10 as overtime if it is part of 50 hours?why it should be calculated at the rate of 12.50 not 10 $?
Please need explanation.
if 50 hours related job is completed during 40 hours why remaining 10 hours should be considered as overtime including paying 12.50$?
The question specifically say that they only have 40 spare hours, and that the extra 10 hours will need to be worked as overtime.