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Accounting For Labour

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Accounting For Labour

  • This topic has 3 replies, 3 voices, and was last updated 6 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 17, 2019 at 5:12 pm #549912
    AvatarCamille
    Participant
    • Topics: 3
    • Replies: 3
    • ☆

    Hi sir,

    Please explain the following:

    An employee is paid on a piecework basis. The basis of the piecework scheme is as follows:

    1 to 100 units – $0.20 per unit
    101 to 200 units – $0.30 per unit
    201 to 299 units – $0.40 per unit

    with only the additional units qualifying for the higher rates. Rejected units do not qualify for payment.

    During a particular day the employee produced 210 units of which 17 were rejected as faulty.

    What did the employee earn for their day’s work?

    In the BPP, the question wasn’t worked out like the practice question similar to the above.

    October 18, 2019 at 7:32 am #549969
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    In future you must ask in the Ask the Tutor Forum if you are wanting for me to answer. This forum is for students to help each other.

    They will be paid for 210 – 17 = 193 units

    100 of them will be paid at $0.20 per unit
    the remaining 93 will be paid at $0.30 per unit.

    November 6, 2019 at 8:16 pm #551707
    Avatarlekanatere
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    But, how does it affect the cost that falled in between 101-200units indicating $0.30, I am still not cleared sir.

    November 7, 2019 at 8:08 am #551741
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    The first 100 are paid at 0.20 as per the question.

    The next 93 take them from the 101th to the 193rd and so are paid at 0.30.

    In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other 🙂

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