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Cost and Revenues practice assessment (Bonus pay) - Help needed!

nrc_1994nrc_1994 Registered Posts: 9
Hello everybody.

I am struggling with the Labour cost (bonus pay). I am doing the practice assessment through Osborne books tutor zone and can't still get the correct answer for the bonus pay.

They say on the assessment:-

"A bonus is paid where production is completed faster than the time allowed; the bonus is paid at half of the time rate for production time saved."

I'll give you one of the employee:-

G.Kalsi - time rate £15.00 per hour - hours worked 38 - time allowed (output per hour) 25 units - actual production 1,050 units.

I got the answer right on the time rate but didn't get the correct answer for bonus pay. Can anybody explains me how to calculation the bonus pay and I would be appreciate it!

Thanks :)


  • nrc_1994nrc_1994 Registered Posts: 9

    Thanks for explaining me about the bonus pay. I am totally understand what you are saying about this.

    Unfortunately, I got the answer sheet here saying it is £30 bonus pay and you say its £90 bonus pay?

    Thanks again
  • nrc_1994nrc_1994 Registered Posts: 9
    Hi Shamil,

    Don't worry about the answer you put it on earlier! So I got the answer for each employees' bonus pay now.

    Cheers for the explanation and my exam is due next week!

    Thanks, Nathan :)
  • nrc_1994nrc_1994 Registered Posts: 9
    Yes of course, I will read it properly. Yes the answer is correct now and I got the clear explanation from you. Cheers for the help!

    Thanks, Nathan :)
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