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unskilled labour cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › unskilled labour cost

  • This topic has 5 replies, 3 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • August 9, 2014 at 9:12 am #188831
    superwomen
    Participant
    • Topics: 16
    • Replies: 20
    • ☆

    Sales (units) : 2000 (Aple) , 4500(Bola)
    Production (units) : 1750 (Aple) , 5000 (Bola)

    Labour :
    Skilled at $10/hrs : 2hrs/unit (Aple) , 2hrs /unit (Bola)
    Unskilled at $7/hrs : 3hrs /unit (Ape) , 4hrs /unit (Bola)

    what is the budget cost for unskilled labour for the period? Answer is $176,750 ??

    August 9, 2014 at 9:14 am #188833
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    Yes – $176750 is correct.

    August 9, 2014 at 9:15 am #188835
    superwomen
    Participant
    • Topics: 16
    • Replies: 20
    • ☆

    Thanks 🙂 🙂 🙂

    August 9, 2014 at 9:19 am #188837
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    You are welcome 🙂

    August 21, 2014 at 1:51 pm #191778
    tarcy
    Member
    • Topics: 3
    • Replies: 2
    • ☆

    May you please explain how to arrive at that figure $176750

    August 21, 2014 at 1:56 pm #191782
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    For each product, multiply the production units by the unskilled hours required.

    Add them up, and then multiply by the rate per hour 🙂

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