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A differential piecework payment scheme operates in the packing department of a factory. Straight piece rate is $ 10 per unit. Details of the scheme are as follows:
Units packed per week ——- premium rate per unit
1-2000 units per week ——- 50 cents per unit
2001 to 3000 units per week ——- 65 cents per unit
3001 to 4000 units per week ——- 75 cents per unit
Only extra units packed, over the previous threshold, qualify for the higher rates.
If 3240 units were packed, how much would be paid in wages??
A. $15,274
B. $ 24, 876
C. $ 30,000
D. $ 34, 230
I get D by calculating premium rates for 3240 units and adding in the standard ($ 3240 * $ 10).
Is this solution correct??
It seems to be (but why on earth are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations 🙂 )
Thank you for your response.
Yes, I am doing the BPP kit. I just found this question in a book (published by a local accountancy school).
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