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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ACCA -Studt Text 2017 – 2.2.1 Example: Piecework
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
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).
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
Thank you very much for your comments 🙂