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relevant costing:labour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › relevant costing:labour

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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    Posts
  • July 13, 2018 at 6:09 pm #462105
    snehadavis
    Member
    • Topics: 12
    • Replies: 9
    • ☆

    kaplan rk -sec b-decision making techniques-qn 206
    Q: 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.
    What cost should be included in the quote for the skilled and unskilled labour?
    $_______ skilled labour $_______ unskilled labour
    ?????????sir,what does a time and half means?and if fully employed there may be 2 cases 1.can hire or 2.cannot hire here what does fully employed on another job mean?does it mean it takes workers from another project?and is project and contract the same?

    July 14, 2018 at 8:50 am #462194
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54671
    • ☆☆☆☆☆

    Time and a half means that they are paid 1 1/2 (i.e. 150%) of their normal pay when working overtime.

    If workers are currently fully employed then it means that if they are taken for the new contract then they will not be able to do their existing work.

    I do suggest that you watch my free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

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