Forums › ACCA Forums › ACCA MA Management Accounting Forums › Question to employee's gross pay
- This topic has 7 replies, 4 voices, and was last updated 9 years ago by samh.
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- June 10, 2015 at 2:23 am #255854
Sir, here’s the question.
An organization 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. Three 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?
here are 2 figures that I have worked out
(1) $20*8hrs= $160
(2) $18 *(200 units*3/60)= $180
but I didn’t know which one is gross pay. I’m confused by ‘gross pay’ given in the question above.🙂
June 10, 2015 at 1:26 pm #256002Hi,for your first figure $180 ,you need to multiply with 80% which is 1.8 then you can get the answer.the one which is minimum guarantee pay that you had worked out.Once you get the figure,then compared which amount is the highest one,then choose the highest one will paid.this is called a time based with guarantee pay.however,if the piecework pay is higher that the minimum wage ,such amount will be paid to worker.for the second figure,that’s correct.hope my explanation will help you to understand.
June 10, 2015 at 3:35 pm #256043Yes! $20*8*0.8=$128 is the minimum wage for the employee.
Thank you so much:)So nice of uJune 10, 2015 at 5:08 pm #256109You are welcome????.Hope it helps you.nice to meet you.
June 26, 2015 at 8:32 pm #258902so whats the final answer.
June 27, 2015 at 1:03 pm #258928180
July 2, 2015 at 9:07 pm #259368Its 180
July 6, 2015 at 1:46 pm #259631180, using piecework
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