Can anyone please help me with this question regarding labour costs!

gianlucapensottigianlucapensotti Registered, AAT Student Posts: 6
I am unsure on how to answer the bonus payment section but the answer booklet says that the answer is 3000. Any idea on how it is done?
I have attached a copy of my notes.

Many thanks :)

Answers

  • dumutrobadumutroba AAT Student, AATQB Posts: 225
    To calculate how much the actual output exceeded the budgeted in percentage
    35000-38500/35000x100=10%
    Therefore 10%x50=£500
    £500x6 workers=£3000
    AAT Level 2. 2018
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  • dumutrobadumutroba AAT Student, AATQB Posts: 225
    Are you self studying?
    AAT Level 2. 2018
    AAT Level 3. 2018
    AAT Level 4.
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  • gianlucapensottigianlucapensotti Registered, AAT Student Posts: 6
    thank you for the help, I am not self studying but I have just never seen a question like this before so it just confused me a little
  • Farah95Farah95 Registered Posts: 6
    edited March 12
    Sorry I am still a little confused with this question. 10% x £50 = £5?

    I can understand why you deduct 35000 from 38500 to get the difference of 3500 (increase of units) which is also 10%
    and I can understand you multiply by 6 as there were 6 workers, but I don't understand the rest? If you can please explain that would be great!
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