Question: SOURCE: ADAPTED FROM ACCA PAPER 1.2 (JUNE 2006), QUESTION 18 An organisations skilled labour, which earns R8 per hour, is fully utilised in manufacturing a

SOURCE: ADAPTED FROM ACCA PAPER 1.2 (JUNE 2006), QUESTION 18 An organisation’s skilled labour, which earns R8 per hour, is fully utilised in manufacturing a product with the following pricing:

Selling price: R60 per unit Variable cost: R35 per unit (R20 skilled labour and R15 other costs)

The organisation considers a contract requiring 90 skilled labour hours. No other skilled labour is available. What is the relevant skilled labour cost for the contract?

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