unit 6 labour hours

just working on a question 3.1 in the ozborne book and my answer doesnt match theres

£7 per hour / 38 worked / standard 24 units / actual 940 units

the answer i get is

7x38 = 266 + 4.13 bouns

but the answer showing is 270.08 ?? can someone show me where am going wrong please

Thanks

vic

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Please can you add some more details?
    It would help those of us who don't have the book to hand.
    Sandy
    [email protected]
    www.sandyhood.com
  • A-Vic
    A-Vic Registered Posts: 6,970
    SandyHood wrote: »
    Please can you add some more details?
    It would help those of us who don't have the book to hand.

    sorry sandy it states that a bonus is paid where production is completed faster than the standard hour input; the bonus is paid at half of the time rate for production time saved.
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    So the hours worked were 38
    Standard output per hour is 24
    the hourly rate is £7
    and a bonus of £3.50 per hour saved

    And actual output was 940
    Sandy
    [email protected]
    www.sandyhood.com
  • A-Vic
    A-Vic Registered Posts: 6,970
    SandyHood wrote: »
    So the hours worked were 40
    Standard output per hour is 24
    the hourly rate is £7
    and a bonus of £3.50 per hour saved

    And actual output was 940

    Yes so i get 28 units to be paid time bonus, so

    24 units = 3.50
    4 units?
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    £7 x 38 hrs = £266
    28 units over the standard = 1.1666666 hours @ £3.50/hr = £4.08333

    Total £270.08
    Sandy
    [email protected]
    www.sandyhood.com
  • A-Vic
    A-Vic Registered Posts: 6,970
    SandyHood wrote: »
    £7 x 38 hrs = £266
    28 units over the standard = 1.1666666 hours @ £3.50/hr = £4.08333

    Total £270.08

    Great thanks Sandy now i get it :001_smile:
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    This thread had become tucked away. As the payment of bonuses has been highlighted in the standards by an article in Accounting Technician, I've moved this up the forum.
    I think bonus payments will be assessed in one of the ECR exams (D09 or J10)
    Sandy
    [email protected]
    www.sandyhood.com
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