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Hi sir I’m finding it hard to understand the way one is supposed to allocate units produced to the upper additional units in the below question, does one have to have to immediately go for the highest rate after first range allocation?
EMCO is a manufacturer of a product used in the industry. The product is assembled from various parts and the production operatives are paid on a piecework basis. The piecework scheme to be applied to all good production in a week is as follows.
0 – 100 Units: $0.40 per unit
101- 200 Units $0.48 per unit
201 – 300 Units $0.56 per unit
Over 300 units: $0.64 per unit
Rejected production does not qualify for payment.
It should also be noted that only additional units qualify for the higher rates.
The following output was achieved by the three operatives during the week ending 31 October 2021.
Operative A B C
Output (including rejects) 520 units 600 units 480 units
Rejects 19 units 62 units 10 units
(a) Calculate separately the earnings of each of operatives A, B and C for the week ending 31 October 2021.Only additional units qualify for the higher rates.
So if they produce 501 ‘good’ units, then the first 100 will be paid at 0.40, the next 100 will be paid at 0.48, the next 100 will be paid at 0.56, and the remaining 201 will be paid at 0.64.
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