All of acompany’s skilled labour, which is paid £8 per hour, is fully employed manufacturing a product to which the following data refer:

The company is evaluating a contract which requires 90 skilled labour hours to complete. No other supplies of skilled labour are available.
What is the total relevant skilled labour cost of the contract?

(a) £720

(b) £900

(c) £1620

(d) £2160 a (2 marks)
ACCA - Financial Information for Management

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per unit per unit Selling price Less 60 Variable costs: Skilled labour 20 Others 15 (35) Contribution 25