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Differential piecework payment scheme – wages

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Differential piecework payment scheme – wages

  • This topic has 2 replies, 3 voices, and was last updated 3 years ago by syedfahad1.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • June 6, 2022 at 12:15 pm #657516
    menpagalhoon
    Participant
    • Topics: 71
    • Replies: 35
    • ☆☆

    Question)

    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??

    June 15, 2022 at 3:50 pm #658807
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2590
    • ☆☆☆☆☆

    Yes, that seems correct.

    June 17, 2022 at 10:32 am #658920
    syedfahad1
    Participant
    • Topics: 16
    • Replies: 11
    • ☆

    Yes your Answer is 100% correct but follow this method.

    (2000*0.5) + (1000*0.65) + (240 * 0.75) = 1830
    Standard rate is $10 * 3240 units = 32400
    Add = 34230

    If you have any other query do let me ask .

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