If an employee produces 200 units in eight hours, what is the employee's gross pay for that day?
Understand the Problem
The question is asking to calculate the gross pay of an employee who produces 200 units in an eight-hour working day, considering both the piecework pay and the guaranteed hourly rate. The piece rate is based on the standard time allowed per unit, while the hourly rate is 80% of a $20 rate.
Answer
The employee's gross pay is $144.
Answer for screen readers
The employee's gross pay for that day is $144.
Steps to Solve
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Calculate the hourly wage The hourly wage is set at $20, and the guaranteed pay is 80% of this rate. [ \text{Hourly Wage} = 0.80 \times 20 = 16 \text{ dollars per hour} ]
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Calculate the total guaranteed pay for eight hours Multiply the hourly wage by the total hours worked (8 hours). [ \text{Guaranteed Pay} = 16 \times 8 = 128 \text{ dollars} ]
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Calculate standard time for producing the units Each unit takes 3 minutes. Calculate how many minutes were spent on 200 units. [ \text{Total Time} = 200 \text{ units} \times 3 \text{ minutes per unit} = 600 \text{ minutes} ] Convert minutes to hours: [ \text{Total Time in Hours} = \frac{600}{60} = 10 \text{ hours} ]
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Calculate piecework pay The piece rate is $18 per hour. However, since only 8 hours are worked: [ \text{Piecework Pay} = 18 \text{ dollars per hour} \times 8 \text{ hours} = 144 \text{ dollars} ]
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Determine gross pay The gross pay is the higher of the guaranteed pay or the piecework pay. [ \text{Gross Pay} = \max(128, 144) = 144 \text{ dollars} ]
The employee's gross pay for that day is $144.
More Information
This calculation considers both the guaranteed hourly wage and the piecework system to ensure the employee earns the maximum possible for their labor.
Tips
- Confusing the time worked versus the time allowed per unit can lead to incorrect calculations in piecework earnings.
- Forgetting to take the maximum of the guaranteed pay and the piecework pay can lead to underestimating the gross pay.
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