Skip to content
How did your June exams go?

Ask the Tutor ACCA MA

Accounting for labour

MMichelle11y ago
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!
John MoffatJohn MoffatTutor11y ago#1
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 :-)
MMichelle11y ago#2
I got it! thx sir!
John MoffatJohn MoffatTutor11y ago#3
Thats great :-)
Sign into reply to this topic.