PCR DEC 08- help

Tina Sparkles
Tina Sparkles Registered Posts: 17 New contributor 🐸
Hi

Im currently doing task 1.3 b- does anyone know how to get the cost per test? This is a fidly one.

thx

Comments

  • Josaphenus
    Josaphenus Registered Posts: 2 New contributor 🐸
    Hi Tina,

    I did this paper yesterday and this was the question I struggled on too.

    They are actaully asking for the ADDITIONAL cost of sub-contracting the tests on top of doing them in overtime so you need to work out the cost per test in overtime first and how much more it is to be subcontracted:

    Overtime rate+Variable O/H (as labour related)
    Per hr: (£12.60+5%)=13.23+ £1.68
    Per test: £0.66 (3mins)+ £0.08 = £0.74

    Vs Quote(given) £1.40
    Increase in cost £0.66

    Total cost (x130,000)85,800


    Hope this makes sense!!!

    J :001_smile:
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