unit 6 labour hours

A-Vic

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

SandyHood

Please can you add some more details?
It would help those of us who don't have the book to hand.

A-Vic

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

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

A-Vic

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

£7 x 38 hrs = £266
28 units over the standard = 1.1666666 hours @ £3.50/hr = £4.08333

Total £270.08

A-Vic

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

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)