Per hour costs and units

gareth1985 Registered Posts: 24
Hi there,

this looks straight forward but I'm struggling a bit with this. I don't understand the question 100%.

The basic pay structure and bonus pay makes sense, but I just want to know how does the 30 units equal at £1.50?

Please help.




  • Vickie30
    Vickie30 AAT Student, AATQB Posts: 24
    Hi Gareth,

    If Justin works 35 hours a week and his output is 10 units an hour: 35x10: 350 - this is his standard production and what he is budgeted to make. His actual units are 380, so if you take the actual units - budgeted units (380-350) you will see that he made 30 more than he was budgeted to do. Any unit extra he produces is paid a bonus of £1.50 (30 units x £1.50) = £45.
    Has this helped at all? If not I will try and explain it another way.
    AATQB - Studying Level 4
  • gareth1985
    gareth1985 Registered Posts: 24
    Hi Vickie, thanks a lot for your helpful quick reply.

    I understand how that works perfectly now.
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