| All of a company’s skilled labour, which is paid £8 per hour, is fully employed manufacturing a product to which thefollowing data refer:
 £ per unit                        £ per unit
 Selling price                                                                             60
 Less Variable costs:
 Less Skilled labour                           20
 Less Others                                     15
 –––
 (35)
 –––
 Contribution                                                                             25
 –––
 The company is evaluating a contract which requires 90 skilled labour hours to complete. No other supplies of skilled
 labour are available.
 What is the total relevant skilled labour cost of the contract?
 A   £720
 B   £900
 C   £1,620
 D   £2,160
 C |