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A student accountant is calculating the relevant cost of a new project. As part of the calculation they need to work out the value to
A student accountant is calculating the relevant cost of a new project. As part of the calculation they need to work out the value to be included for labour. Details of the labour force needed is shown below; Cost of labour The company has 10 permanent employees who are on a 35 hour week contract. The employees are expected to come to work even if there is nothing to do. Currently there is spare capacity of 80 hours. If the project goes ahead each employee would be required to work 12 hours on the project. They are paid 12 an hour with overtime being paid at time and a half. Required Is the cost of labour a relevant cost to the new project? Choose Round off your answer to the nearest whole number with no What is the relevant cost (if any) that would be charged to the project for labour? Esign or commas
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