Multiple Choice
The labour requirements for a special contract are 250 skilled labour hours paid at £10 per hour and 750 semi skilled hours paid £8 per hour. At present, skilled labour is in short supply, and all such labour used on this contract will be at the expense of other work which generates £12 contribution per hour (after charging labour costs) There is currently a surfeit of 1200 semi skilled labour hours , but the firm temporarily has a policy of no redundancies. The relevant cost of labour for the special contract is:
A) £3000
B) £5500
C) £8500
D) £11500
Correct Answer:

Verified
Correct Answer:
Verified
Q10: The time period over which the relationship
Q11: Last year ABC Ltd sold 5000 units
Q12: Southend Ltd manufactures wheelie bins, each of
Q13: Of the following statements about marginal costing
Q14: An opportunity cost of a resource is
Q15: It may be that a product makes
Q16: A company is proposing to expand its
Q17: Where a resource was originally purchased for
Q19: Which of the following statements about contribution
Q20: Differential (incremental) costs are the expenses that