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the question states product L requires 9 hours to complete a unit with a cost of $9 per hour. Idle time allowed is 10%. What is the standard labour cost of product L?
My answer would be 9 hours plus 10% of 9 hours all multiplied by the cost $9 which gives $89.10
the mark scheme answer is 9hrs * 100/90 * $9 =$90
im not sure of what the 100/90 represents
If the file time is 10%, it means that for every 10 hours they pay, then 1 hour is idle and only 9 hours are worked.
Putting it the other way round, for every 9 hours of work they need to pay for 10 hours.
So the hours paid are 10/9 times the hours paid (which is the same as 100/90).
thank you i think i got it. if 9 hours represents 90% then how many hours the 100% and cross multiply.
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