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The Labour Requirements for a Special Contract Are 250 Skilled

Question 18

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:

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