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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › chap 4 Q7
siR I DONT UNDERSTANd the calculation
An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-based rate of pay which is based on $20 per hour for an eight hour working day. Tree minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour.
If an employee produces 200 units in eight hours on a particular day, what is the employee’s gross pay for that day?
A
$128
B
$144
C
$160
D
$180
Three minutes is the standard time per unit, so producing 200 units is equivalent to 200 x 3/60 = 10 hours.
It is paid at the rate of $18 per hour, which gives a total of $180.
(This is more than the guaranteed minimum of 80% x 8 hours x $20 = $128)