Question: Question # 4 A contract is under consideration that requires 6 0 0 labour hours to complete. There are 3 5 0 hours to spare

 Question # 4 A contract is under consideration that requires 600

Question # 4
A contract is under consideration that requires 600 labour hours to complete. There are 350 hours to spare capacity. The remaining hours for the contract can be found either by weekend overtime working paid at double the normal rate of pay or by diverting labour from the manufacturing the product QZ. If the contract is undertaken and labour is diverted, then sales of product QZ will be lost. Product QZ takes three labour hours per unit to manufacture and makes a contribution of Rs.12 per unit. The normal rate of pay of labour is Rs.9 per hour.
Required:
What is the total relevant cost of labour for the project?
labour hours to complete. There are 350 hours to spare capacity. The

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