A company is launching a new product. In order to manufacture this new product, two types of labour are required. The new product required 5 hours of skilled labour and 5 hours of semi skilled.
A、skilled employee is available and is currently paid $10 per hour.
A、replacement would, however, have to be obtained at a rate of $9 per hour for the work that would otherwise be done by the skilled employee. The current rate for semi skilled workers is $5 per hour and an additional employee would be appointed for this work. What is the relevant cost of labour to be used in making one unit of the new product?
A、$45
B、$50
C、$70
D、$75
A、skilled employee is available and is currently paid $10 per hour.
A、replacement would, however, have to be obtained at a rate of $9 per hour for the work that would otherwise be done by the skilled employee. The current rate for semi skilled workers is $5 per hour and an additional employee would be appointed for this work. What is the relevant cost of labour to be used in making one unit of the new product?
A、$45
B、$50
C、$70
D、$75
【参考答案及解析】
The correct answer is: $70. The rate of $10 per hour is not relevant because it would be paid anyway. The relevant hourly rate is the incremental cost of $9 per hour. Skilled labour 5 hour × $9 = 45 Semi skilled 5 hours × $5 = 25 Total = $70 If you chose $45 you missed out the semi skilled labour. If you chose $50 you costed all of the hours at the $10 per hour which is the rate for the skilled employee, but not the relevant one in this scenario. If you chose $75 you then added the 5 hours at $5 to this $50. In other words all hours were costed using normal hourly rates.
The correct answer is: $70. The rate of $10 per hour is not relevant because it would be paid anyway. The relevant hourly rate is the incremental cost of $9 per hour. Skilled labour 5 hour × $9 = 45 Semi skilled 5 hours × $5 = 25 Total = $70 If you chose $45 you missed out the semi skilled labour. If you chose $50 you costed all of the hours at the $10 per hour which is the rate for the skilled employee, but not the relevant one in this scenario. If you chose $75 you then added the 5 hours at $5 to this $50. In other words all hours were costed using normal hourly rates.