LABOUR COSTING
1. A company has 15 production workers who are
paid a basic rate of £6 per 40 hours a week. Any
hours worked above forty hours is paid at a time
and one third. For the year ended 31 December
2020, the workers worked 43 hours for 50 weeks.
Workers were paid a shared bonus of £1500 for
the year Calculate the wage cost for the year.
2. A factory has 12 production workers who are paid
a basic wage rate of £7 per hour. Any hours
worked above forty hours is paid at time and a
half. For the month of January 2020, the workers
worked 46 hours per week and produced 2 500
units. A bonus of £2 per unit is paid for every unit
produced above 1500 units. Calculate the wage
cost for the month of January 2020.
3. The company’s production line has 20 employees.
Each employee worked. 8 hours per day for 5
days per week in the month of December.
Employees worked:
 5 hours at a standard time of £5 per hour
 2 hours at time and a half
 1 hour at double time
Calculate the wage cost for the month of
December.
4. A company produces two different products;
Product A and Product B. there are 8 workers
producing product A at a rate of £4 per hour and 7
workers producing product B at a rate of
£5 per hour. During the month of November
2020, the workers worked 6 hours per day for 5
days per week. The production workers worked 1.5
hours per day overtime for the final week of the
month and were paid at a time and a half.
Calculate the wage cost for the month of
November 2020 for each production line.
5. A factory has 30 production workers. 12 workers
work in the production of Regular while the rest
of the workers work on the production of Deluxe.
Workers are paid at a rate of £6 per hour for
regular and £8 for Deluxe. Any hours worked
above the basic forty hours per week is paid at
double the time. In addition to this, workers are
paid a bonus of 50 pence for each unit produced
which is to be shared among the workers. During
the year ended 31 December 2020, the workers
worked 44 hours per week for 48 weeks and
produced 8 000 units of Regular and 10 500 units
of Deluxe. Calculate the wage cost for each
production line for the year ended 31 December
2019.
6. A company produces a single product A. the
standard time to produce each unit is 3 hours.
There are 8 production workers who are paid at
£6 per hour plus a bonus of 70% of time saved.
For the year ended 31 December 2020, the
workers worked 40 hours per week for 50
weeks and produced 6 000 units. Calculate the
wage cost for the year.
7. The factory has 20 workers, twelve workers who
made Standard and eight workers who made
deluxe. Workers are paid £5 per hour and a bonus
of 60% of time saved. The standard time to
produce one unit of Standard and one unit of
deluxe is 4 hours and 5 hours respectively. During
the year the workers worked 40 hours per week
for 48 weeks per year and produced 6 000 Regular
and 4000 Deluxe were manufactured and
transferred to finished good
8. There are 6 workers producing bowls and 5
Workers producing plates. Production workers are
paid at £5 per hour and a bonus of 75% of time
saved. The standard time to produce a bowl and a
plate is 45 minutes and 30 minutes per unit
respectively. For the year ended 30 June 2020,
each worker worked 40 hours per week for 50
weeks. For the year ended 30 June 2020, 20000
bowls and 25000 plates were transferred to
finished goods.
9. A company produces two different products;
Product A and Product B. there are 8 workers
producing product A at a rate of £5 per hour and
12 workers producing product B at a rate of £4 per
hour. Workers are paid a bonus of 50% of time
saved. The standard time to produce one unit of A
and one unit of B is 3 hours and 5 hours
respectively. During the month of December
2020, the workers worked 8 hours per day for 5
days per week and produced 500 units of Product
A and 400 units of Product B. Calculate the wage
cost for the month of December 2020 for each
production line.
10. The factory has 25 production workers, 13
producing Sports bag and 12 producing Golf bag.
Production workers are paid at £5.50 per hour
plus a bonus of 80% of time saved. The standard
time to produce one unit sport bag is 3 hours and
the standard time to produce a golf bag is 1 hour
30 minutes. During the year, the workers worked
40 hours per week for 50 weeks and produced
10000 Sports bag and 20 000 golf bags.