Accounting Multiple Choice Question – 17 May 2022

Eight employees work in a team.

Each employee is paid £16 an hour and the team share a group bonus between them, which is based on their output of product.

For any production in excess of 500 units the team, as a group, is paid a bonus of £8 per unit. The bonus is shared equally and
paid on a weekly basis.

Last week each member of the team worked 40 hours, and the team as a whole produced 560 units.

What is the pay of each member of the team?

Select ONE answer:

1. £700
2. £760
3. £1,120
4. £1,200

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – (40 * £16) = £640 + (560-500 *8)/8 ==> £700
2. Not correct
3. Not correct
4. Not correct

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