CIMA Exam CIMAPRO19-P01-1 Topic 10 Question 73 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 73
Topic #: 10

The labour requirement for a special contract is 250 skilled labour hours paid at $10 per hour and 750 semi-skilled labour hours paid at $8 per hour.

At present, skilled labour is fully utilised on other contracts which generate a $12 contribution per hour, after charging labour costs. Additional skilled labour is unavailable in the short term.

There is a surplus of 1,200 semi-skilled hours over the period of the contract but the firm has a policy of no redundancies.

The relevant cost of labour for the special contract is:

A$ 5,500

B$ 3,000

C$ 8,500

D$ 11,500

Show Suggested Answer

Suggested Answer: A, B, D

References:

by Brandon at Aug 07, 2023, 05:10 PM

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Beckie

1 months ago

I'm feeling a bit like a semi-skilled laborer right now, trying to figure out this question. But I think Magnolia's step-by-step approach is the way to go. Time to put on my thinking cap and get this right!

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Quentin

7 days ago

B) $ 3,000

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Linwood

15 days ago

I think it's A) $ 5,500 too.

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Ceola

20 days ago

A) $ 5,500

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Casie

1 months ago

Haha, this question is a real head-scratcher. I bet the exam writers are having a good laugh at our expense. Anyway, I'm going with C) $8,500 - it just seems like the most logical answer based on the information provided.

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Hubert

8 days ago

I see where you're coming from, but I think B) $3,000 is the correct answer. Let's see who's right!

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Fernanda

11 days ago

I'm not so sure about that. I'm leaning towards A) $5,500. It just seems more reasonable to me.

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Hubert

20 days ago

I think you might be onto something with C) $8,500. It does seem like the most logical choice.

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Alison

1 months ago

Wait, what? They're saying the skilled labor is already fully utilized on other contracts that generate a higher contribution per hour. Wouldn't that mean we can't use that labor and have to find an alternative, like subcontracting? This question is tricky!

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Virgilio

7 days ago

The relevant cost of labor for the special contract must be calculated carefully.

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Ellsworth

22 days ago

We have a surplus of semi-skilled hours, but the firm has a policy of no redundancies.

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Fanny

1 months ago

We can't use the skilled labor for this special contract, it's already fully utilized on other contracts.

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Gregoria

2 months ago

Hmm, this seems straightforward. We just need to calculate the total labor cost based on the given information. I think the answer is C) $8,500.

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Jesusita

6 days ago

D) $ 11,500

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Malcom

11 days ago

C) $ 8,500

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Estrella

12 days ago

B) $ 3,000

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Christiane

27 days ago

A) $ 5,500

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Magnolia

2 months ago

Okay, let's think this through step-by-step. The skilled labor costs $10 per hour, and we need 250 hours, so that's $2,500. The semi-skilled labor costs $8 per hour, and we need 750 hours, so that's $6,000. Adding those up, the total labor cost is $8,500. Therefore, the correct answer is C) $8,500.

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