Tamar Builders Ltd has been asked to build a conservatory for a customer. The conservatory will require 15 hours' supervision time by a foreman who is paid £10 per hour. The foreman has spare capacity during normal working hours but it is estimated that 10 hours of the supervision will have to be undertaken outside normal working hours and will be paid at £12 per hour. Semi-skilled workers will be required for the job for 150 hours in total. The current rate per hour is £7. The business has some spare capacity, at present, and so these workers have been undertaking jobs that are normally undertaken by unskilled workers. If the semi-skilled workers are required to build the conservatory, they will be taken off the unskilled jobs that will be done by unskilled workers who are normally paid £5 per hour. However, because the unskilled workers are already fully occupied, they will do the jobs outside normal working hours at an overtime rate of £6 per hour. What is the relevant cost of labour when assessing the viability of the conservatory contract? O A. £1,220 OB. £1,070 OC. £920 OD. £1,020 ...

Tamar Builders Ltd has been asked to build a conservatory for a customer. The conservatory will require 15 hours' supervision time by a foreman who is paid £10 per hour. The foreman has spare capacity during normal working hours but it is estimated that 10 hours of the supervision will have to be undertaken outside normal working hours and will be paid at £12 per hour. Semi-skilled workers will be required for the job for 150 hours in total. The current rate per hour is £7. The business has some spare capacity, at present, and so these workers have been undertaking jobs that are normally undertaken by unskilled workers. If the semi-skilled workers are required to build the conservatory, they will be taken off the unskilled jobs that will be done by unskilled workers who are normally paid £5 per hour. However, because the unskilled workers are already fully occupied, they will do the jobs outside normal working hours at an overtime rate of £6 per hour. What is the relevant cost of labour when assessing the viability of the conservatory contract? O A. £1,220 OB. £1,070 OC. £920 OD. £1,020 ...

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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