All of a company’s skilled labour, which is paid £8 per hour, is fully employed manufacturing a product to which the following 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 |