4G 9:21 PP 85% 4

9:21 a P Mal Bpp kit 2020.pdf 42 85%i x BPP CUESTIONS 6.26 A business makes one product only. The following data ieIatS to the total labour castof making 500 units in a one week period. Number ot employees Number ot hours Rate pet hour Total cost 2,100 Basic wage Overtime Total labour cost 12 per employee 35 5,00 7,50 Management are thinking Of changing the remuneration method to a piecework system where employees are paid $4.10 per unit tor each unit they produce tor the first 40 units and $4.70 per unit tor any units produced over and above 40. Employees are expected to produce 45 units per week under this system. What is the change In unit labour cost from the current system to the proposed piecework system? A C D $4.17 increase $0.93 decrease $4.17 decrease $492 decrease (2 marks) 6.27 Employees in a factory are paid ata basic hourly rate ot $5.50 for a 35 hour week. Overtime is paid at a rate of $7.50 per hour. It takes one employee 3 hours to produce one unit of thesde product. On average employees work 4 hours of Overtime in a week. Management are considering automating part of the production process which will reduce unit production time by 30 minutes. It is expected that D'ertime Will not be needed under this system. What would he the effect Of the new system on the per unit labour cost? C D $3.37 increase $2.31 decrease $3.37 decrease $2.31 increase (2 marks) 6.28 A business currently uses piecework scheme to pay its direct labour. Employees are paid S3.50 per unit for the first 50 units and $4.00 per unit forevery unit above 50 produced in a week. On average an employee produces 60 units in a 38 hour working week. Management are considering changing to a per hour labour remuneration scherne, where employees would he paid a basic wage ot $5.00 per hour for a 36 hauruorking v,ek with overtime paid at a premium basic wage of $2,40. There is not expected to be a change in the level of productivity. What is the change in unit labour cost from the piecework system to the proposed hourly rate system? A $0.41 increase SO.33 decrease $0.41 decrease D $0.50 decrease 6.29 WhlCh of the following are indirect costs? (iii) A C The depreciation of maintenance equipment. The overtime premium incurred at the specific Of a customer. The hire of a tool for specific job. Item (i) only Items (i) and (ii) only (iii and (iii) only All of them 55/192 Fullscreen (2 marks) (2 marks) 43 Search