The Amber is a product made by Howells Ltd. The following data applies to its production: In one standard hour, 5 units of Amber should be made (i.e. one Amber every 12 minutes). Actual production for the period was 250 units. Actual hours worked to achieve this production = 40 hours. The basic rate of pay = $12/hour. A bonus of 60% of the basic rate of pay is earned for every one hour of production time saved through efficient production.What is the labour cost for making 250 Amber units?a) $600b) $672c) $552d) $480

Standard hours to be taken for production of 250 units = 250 units × 12 minutes = 3000 minutes In…

Answered: The Amber is a product made by Howells…

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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The Amber is a product made by Howells Ltd. The following data applies to its production: In one standard hour, 5 units of Amber should be made (i.e. one Amber every 12 minutes). Actual production for the period was 250 units. Actual hours worked to achieve this production = 40 hours. The basic rate of pay = $12/hour. A bonus of 60% of the basic rate of pay is earned for every one hour of production time saved through efficient production.

What is the labour cost for making 250 Amber units?
1. a) $600
2. b) $672
3. c) $552
4. d) $480

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