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chap 4 Q7

Aabdullah12y ago
siR I DONT UNDERSTANd the calculation An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-based rate of pay which is based on $20 per hour for an eight hour working day. Tree minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour. If an employee produces 200 units in eight hours on a particular day, what is the employee’s gross pay for that day? A $128 B $144 C $160 D $180
John MoffatJohn MoffatTutor12y ago#1
Three minutes is the standard time per unit, so producing 200 units is equivalent to 200 x 3/60 = 10 hours. It is paid at the rate of $18 per hour, which gives a total of $180. (This is more than the guaranteed minimum of 80% x 8 hours x $20 = $128)
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