A contract is under consideration which would require 1,400 hours of direct labour. There is spare...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655654c0d307_5246655654c06eb9.jpg)
Transcribed Image Text:
A contract is under consideration which would require 1,400 hours of direct labour. There is spare capacity of 500 hours of direct labour, due to the cancellation of another order by a customer. The other time would have to be found by asking employees to work in the evenings and at weekends, which would be paid at 50% above the normal hourly rate of R15. Alternatively, the additional hours could be found by switching labour from other work which earns a contribution of R5 per hour. Required: Calculate the relevant cost of direct labour if the contract is accepted and undertaken. A contract is under consideration which would require 1,400 hours of direct labour. There is spare capacity of 500 hours of direct labour, due to the cancellation of another order by a customer. The other time would have to be found by asking employees to work in the evenings and at weekends, which would be paid at 50% above the normal hourly rate of R15. Alternatively, the additional hours could be found by switching labour from other work which earns a contribution of R5 per hour. Required: Calculate the relevant cost of direct labour if the contract is accepted and undertaken.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The unearned advertising revenues collected in advance during the year total $482,800, and the unearned advertising revenue at the end of the year is $112,500. a. Record the following transactions...
-
If some firms were to exit the market for vinyl records, what would happen to the market clearing price and equilibrium quantity? Explain briefly.
-
Explain the management accountant's role in helping organizations design stronger incentive systems for their employees. LO1
-
Alan Waung, a Hong Kong businessperson, purchased a golf course in Saginaw, Michigan, as an investment. As an avid golfer, Alan anticipates spending several weeks during the year at his "Northern...
-
Employment Agencies are exempt from the laws governing hiring practices because they are seen as independent organizations. Group of answer choices True False
-
the demand curveis linear :Q=100-.3P+1.5Y+.2A p: price Y income A:advertising At P=3$.Y= 1500$and A= 3000$ what is the price elasticity of demand ? Elastic or in elastic ? what is the income...
-
How do services and products differ? What kind of decisions do companies make regarding products and services? Why are brands important to marketers? How do marketing strategies change during the...
-
What leadership principles do you feel you possess that are important for APRNs to exhibit? What principles do you need to explore to be more confident in performing? Which leadership style do you...
-
Question 1- Where do you go in the Courier to find out your amount of leftover inventory for a specific product last round? Based on the production tab of the worksheet I gave you; how do you use...
-
1. Do you think that the NFL and franchise owners are meeting their obligations to employee health and safety? 2. Do you think that the NFL's and owners' responsibilities in terms of player safety...
-
Explain the term \'management\'. Also, explain briefly mission functions of management. ( b ) What are the different types of plant layout? Explain any two with neat sketches.
-
One of your colleagues is experiencing some challenges in getting trainees to actively participate in his training sessions. Knowing you are an expert trainer, he solicits your opinion. Which of the f
-
Advanced: Calculation of NPV and IRR, a discussion of the inconsistency in ranking and a calculation of the cost of capital at which the ranking changes A company is considering which of two mutually...
-
Advanced: Calculation of NPV and additional cash flows which will result in a zero NPV Losrock Housing Association is considering the implementation of a refurbishment programme on one of its housing...
-
Advanced: Evaluation of a proposed investment of computer integrated manufacturing equipment and a discussion of NPV and ARR Abert, the production manager of Blom pic, a manufacturer of precision...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App