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- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.

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- April 4, 2016 at 4:19 pm #308987
Hello sir,

thanks so much for the lectures, truly appreciate it.I have a couple of questions, the first one being

Q: 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. 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?A $128

B $144

C $160

D $180Note: So i understand the working of the piecework of 3/60*200*18=180 which is the right answer

However, just for my understanding- I do not understand the “guarantees its employees 80% of a time-based rate of pay which is based on $20 per hour for an eight hour working day.” are we to ignore it in our calculations/ what does that mean when its added to the piecework?thanks.

April 5, 2016 at 6:45 am #309019What it means is that the minimum they will be paid is 80% x 8 hours x $20 = $128

So if the piecework amount came to less than 128, they would be paid 128.

If the piecework amount comes to more than 128 (as it does here) then they will be paid the piecework amount.April 9, 2016 at 10:04 am #309372Right, got it! Thank you so much 🙂

April 9, 2016 at 8:54 pm #309587You are welcome 🙂

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