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Question # 4 A contract is under consideration that requires 6 0 0 labour hours to complete. There are 3 5 0 hours to spare
Question # A contract is under consideration that requires labour hours to complete. There are hours to spare capacity. The remaining hours for the contract can be found either by weekend overtime working paid at double the normal rate of pay or by diverting labour from the manufacturing the product QZ If the contract is undertaken and labour is diverted, then sales of product QZ will be lost. Product QZ takes three labour hours per unit to manufacture and makes a contribution of Rs per unit. The normal rate of pay of labour is Rs per hour. Required: What is the total relevant cost of labour for the project?
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A contract is under consideration that requires labour hours to complete. There are hours to spare capacity. The remaining hours for the contract can be found either by weekend overtime working paid at double the normal rate of pay or by diverting labour from the manufacturing the product QZ If the contract is undertaken and labour is diverted, then sales of product QZ will be lost. Product QZ takes three labour hours per unit to manufacture and makes a contribution of Rs per unit. The normal rate of pay of labour is Rs per hour.
Required:
What is the total relevant cost of labour for the project?
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