Suppose the units of a product are produced at the rate of 4 units per useful direct labour hour. Direct labour idle time is 10% of hours paid for.…
CA Intermediate · Cost and Management Accounting · RTP · September 2025
Suppose the units of a product are produced at the rate of 4 units per useful direct labour hour. Direct labour idle time is 10% of hours paid for. Sales of 1,000 units are budgeted and finished goods stock is expected to rise by 100 units. The budgeted direct labour hours for the production would be:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
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Topics: Budgets and Budgetary Control, Employee Cost & Direct Expenses
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