The manufacturing plant at Daydream plc has three departments.The budgets for each department are shown below:
$$\begin{array} { l c c c }
& \text { A } & \text { B } & \text { C } \
\text { Production Overheads } & £ 3 \mathrm {~m} & £ 6 \mathrm {~m} & £ 30 \mathrm {~m} \
\text { Hours worked } & 1 \mathrm {~m} & 1 \mathrm {~m} & 1 \mathrm {~m} \
\text { Direct wages } & £ 12 \mathrm {~m} & £ 16 \mathrm {~m} & £ 20 \mathrm {~m}
\end{array}$$
Calculate the wage rate per hour for each department.

Question

The manufacturing plant at Daydream plc has three departments.The budgets for each department are shown below:
$$\begin{array} { l c c c } 
& \text { A } & \text { B } & \text { C } \
\text { Production Overheads } & £ 3 \mathrm {~m} & £ 6 \mathrm {~m} & £ 30 \mathrm {~m} \
\text { Hours worked } & 1 \mathrm {~m} & 1 \mathrm {~m} & 1 \mathrm {~m} \
\text { Direct wages } & £ 12 \mathrm {~m} & £ 16 \mathrm {~m} & £ 20 \mathrm {~m}
\end{array}$$
Calculate the wage rate per hour for each department.

Quizplus · Accepted Answer

The wage rate per hour is calculated by dividing the direct wages by the hours worked for each department. For department A, it's £12m / 1m hours = £12 per hour. For B, it's £16m / 1m hours = £16 per hour. For C, it's £20m / 1m hours = £20 per hour.

The Manufacturing Plant at Daydream Plc Has Three Departments Calculate the Wage Rate Per Hour for Each Department