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ACCA -Studt Text 2017 – 2.2.1 Example: Piecework

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ACCA -Studt Text 2017 – 2.2.1 Example: Piecework

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 18, 2016 at 1:01 pm #344685
    Riyancie
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    Dear sir, Please consider the below example. Confusion for me is, if the week is 35 hours and no mention of overtime, how the employee ends up with 47.5 total piecework hours?

    2.2.1 Example: Piecework

    An employee is paid $5 per piecework hour produced. In a 35 hour week they produce the following output.

    Piecework time allowed
    per unit
    3 units of product A 2.5 hours
    5 units of product B 8.0 hours

    Required

    Calculate the employee’s pay for the week.

    Solution
    Piecework hours produced are as follows.
    Product A 3 X $2.5 hours 7.5 hours
    Product B 5 X $8 hours 40.0 hours
    Total piecework hours 47.5 hours

    Therefore the employee’s pay = 47.5 X $5 = $237.50 for the week

    Thank you in advance

    Mathews

    October 18, 2016 at 3:01 pm #344708
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    For each unit of A they are allowed 2.5 hours.
    So if they produce 3 units, then they will be paid for 3 x 2.5 hours = 7.5 hours.

    Similarly, if they produce 5 units of B they will be paid for 5 x 8 = 40 hours.

    So they will be paid for a total of 47.5 hours (regardless of whether it actually took them more or less time to actually produce).

    October 19, 2016 at 8:37 am #344925
    Riyancie
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    Thank you Mr. Moffat for replying promptly. – I’m taking this opportunity to thank you and Opentuition for all the effort going in to this site and for keeping it free for thousands of students. Since I’m married and also working I don’t have time for tuition classes. So the way forward for me would be Opentuition. Thank you

    October 19, 2016 at 2:13 pm #344978
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Thank you very much for your comments 🙂

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