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Sir, here’s the question.
An organization 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. Three 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?
here are 2 figures that I have worked out
(1) $20*8hrs= $160
(2) $18 *(200 units*3/60)= $180
but I didn’t know which one is gross pay. I’m confused by ‘gross pay’ given in the question above.🙂
Hi,for your first figure $180 ,you need to multiply with 80% which is 1.8 then you can get the answer.the one which is minimum guarantee pay that you had worked out.Once you get the figure,then compared which amount is the highest one,then choose the highest one will paid.this is called a time based with guarantee pay.however,if the piecework pay is higher that the minimum wage ,such amount will be paid to worker.for the second figure,that’s correct.hope my explanation will help you to understand.
Yes! $20*8*0.8=$128 is the minimum wage for the employee.
Thank you so much:)So nice of u
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