ACCA F2: Accounting For Labour Trivia Quiz

1. An employee is paid on a piecework basis as follows: 1 to 500 units - $0.50 per unit 501 to 1000 units - $0.75 per unit 1001 to 1500 units - $1.00 per unit Only the additional units qualify for the higher rates, and rejected units do not qualify for payment. During one day an employee produced 1200 units of which 32 were rejected. How much did the employee earn for the day?

$825

$1200

$793

$1168

1200 – 32 = 1168 units will be paid for.

They will be paid as follows:
500at $0.50 = 250
500at $0.75 = 375
168at $1.00 = 168
1168units $793

Explanation

1200 – 32 = 1168 units will be paid for.

They will be paid as follows:
500at $0.50 = 250
500at $0.75 = 375
168at $1.00 = 168
1168units $793

2. Which of the following types of workers would be classified as indirect labour?

Painters in a decorating company

Machine repairers in a factory making desks by machine

Machine operators in a factory making desks by machine

Assembly workers in a factory making calculators

Indirect labour refers to workers who are not directly involved in the production process but provide support or maintenance services. In this case, machine repairers in a factory making desks by machine would be classified as indirect labour because they are not directly involved in the production of desks but rather provide maintenance and repair services for the machines used in the production process.

Explanation

Indirect labour refers to workers who are not directly involved in the production process but provide support or maintenance services. In this case, machine repairers in a factory making desks by machine would be classified as indirect labour because they are not directly involved in the production of desks but rather provide maintenance and repair services for the machines used in the production process.

3. A company budgeted on producing 20,000 units and taking 8,000 hours. They actually produced 25,000 units and took 11,000 hours. What was the capacity ratio?

110.0%

72.7%

90.9%

137.5%

actual hours worked = 11000
budgeted hours = 8000
Capacity ratio = 11000 / 8000 = 137.5%

Explanation

actual hours worked = 11000
budgeted hours = 8000
Capacity ratio = 11000 / 8000 = 137.5%

4. A company had 80 direct production workers at the beginning of last year and 60 direct production workers at the end of last year. During the year a total of 45 employees had left the company. The labour turnover rate for last year was:

21.4%

35.7%

64.3%

75.0%

During the year the number of employees fell by 80 – 60 = 20.
45 employees had left, and so 45 – 20 = 25 were replaced.
The average number of employees was (80 + 60) / 2 = 70.
The labour turnover rate = 25/70 = 35.7%

Explanation

During the year the number of employees fell by 80 – 60 = 20.
45 employees had left, and so 45 – 20 = 25 were replaced.
The average number of employees was (80 + 60) / 2 = 70.
The labour turnover rate = 25/70 = 35.7%

5. A production department consists of 15 direct labour employees who each work 36 hours per week. Output from the department is expected to be 4 units of product per direct labour hour worked. During a particular week, the department recorded 500 hours of time spent working on production and actual output was 2,100 units of the product. What was the production volume ratio for the department for the week?

92.5%

97.2%

102.9%

105.0%

Actual output = 2,100 units.
Capacity = 15 employees x 36 hours per week = 540 hours.
These two measurements need to be put on to the same basis, hours or units.
Actual output of 2,100 units is the equivalent of 525 hours of work at the standard rate of efficiency.
Production volume ratio = (525/540) x 100% = 97.2%.

Check: Capacity utilisation ratio = 500/540 = 92.6%.
Productivity or efficiency ratio = 2,100/(500 x 4) = 105%
Production volume ratio = 92.6% x 10597.2%.% = 97.2%.

Explanation

Actual output = 2,100 units.
Capacity = 15 employees x 36 hours per week = 540 hours.
These two measurements need to be put on to the same basis, hours or units.
Actual output of 2,100 units is the equivalent of 525 hours of work at the standard rate of efficiency.
Production volume ratio = (525/540) x 100% = 97.2%.

Check: Capacity utilisation ratio = 500/540 = 92.6%.
Productivity or efficiency ratio = 2,100/(500 x 4) = 105%
Production volume ratio = 92.6% x 10597.2%.% = 97.2%.

6. A company budgeted on producing 20,000 units and taking 8,000 hours. They actually produced 25,000 units and took 11,000 hours. What was the efficiency ratio?

110.0%

72.7%

90.9%

137.5%

actual hours worked = 11000
standard hours for the actual production = 25000 / 20000 x 8000 = 10000
Efficiency ratio = 10000 / 11000 = 90.9%

Explanation

actual hours worked = 11000
standard hours for the actual production = 25000 / 20000 x 8000 = 10000
Efficiency ratio = 10000 / 11000 = 90.9%

7. A company employed 5,700 employees at the end of a financial year. During the year 600 employees left the company and 360 were recruited. What was the rate of labour turnover in the year?

10.3%

10.5%

10.8%

16.5%

Employees at the beginning of the year = 5,700 – 360 + 600 = 5,940
Average number of employees = (5,700 + 5,940)/2 = 5,820
Labour turnover = (600/5,820) x 100% = 10.3%

Explanation

Employees at the beginning of the year = 5,700 – 360 + 600 = 5,940
Average number of employees = (5,700 + 5,940)/2 = 5,820
Labour turnover = (600/5,820) x 100% = 10.3%