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Accounting for labour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for labour

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 22, 2014 at 12:45 am #191831
    Michelle
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi Mr John, I tried doing this qn on the course note but the ans I got was inncorrect. As such, I would like to know where did I go wrong.

    An employee is paid on a piecework basis as follows:
    1 to 500units – $0.50 per unit
    501 to 1000 units – $0.75 per unit
    1001 to 1500 units – $1.00 per unit
    Only the additional units qualify for the higher rates and rejected units do not qualify for payment. During one day, an employee produced 1200units of which 32 were rejected.
    How much did the employee earn for the day?
    a) $825
    b) $1200
    c) $793
    d) $1168

    My working for this qn was:
    Good quality: 1200units – 32units = 1168units
    1st 500units: 500x$0.50=$250
    leftover units (668units): 668x$0.75=$501
    Total amt earned: $250+$501=$751

    The ans I got is not one of the option. Pls help! thanks!

    August 22, 2014 at 7:41 am #191844
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Your workings started correctly, but you have forgotten that those units in excess of 1000 are at $1 per unit.

    So……500 x $0.50 = 250
    500 x $0.75 = 375
    168 x $1 = 168

    So the total comes to 250 + 375 + 168 = $793

    Hope that makes sense 🙂

    August 25, 2014 at 11:11 am #192229
    Michelle
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    I got it! thx sir!

    August 25, 2014 at 1:09 pm #192236
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Thats great 🙂

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    Posts
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