Costs & Revenues Help needed - Chapter 3 Labour Costs; Calculating Bonus Pay

petekavee15

Hello, I wondered if anyone can help. I've just started Costs and Revenues and just been looking at labour costs. On page 77 of the osbourne book, it provides a case study of calculating the labour payment. I don't understand the example with Wolverhampton Factory;

It says Martin Lee worked 38 hours last week at £10 per hour. 30 Minutes are allowed on each work of production. Last week he completed 61 units.

Time rate 38 x 10 = £380

Bonus time allowed 71 x 30 = 35 hours 30 minutes

No time has been saved, so no bonus payable. time rate of £380 paid.

How was 35 hours 30 minutes worked out? I did 71 x 30 but I got 2130?!!!

Can anyone help?

thanks

RosieCarlisle

From what I can see, it's 71 x 30 minutes, which does equal 2130 minutes, but they've converted that into hours and minutes, which equals 35 hours and 30 mins.