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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Calculate last week’s total gross pay for each of the following employees.

Employee Garments Produced Total Gross Pay

Goodrich, P. 109 $433.00

To determine

To calculate: The total gross pay of last week for Goodrich, P. who is a worker at Euro Couture, a manufacturer of women’s apparel and he produced 109 garments last week. He is paid on differential piecework schedule for per garment sewn as follows:

Pay Level Garments Produced Rate Per Garment
1 1-50 $3.60
2 51-100 $4.25
3 101-150 $4.50
4 Over 150 $5.10
Explanation

Given Information:

The provided differential piecework schedule for per garment sewn as follows.

Pay Level Garments Produced Rate Per Garment
1 1-50 $3.60
2 51-100 $4.25
3 101-150 $4.50
4 Over 150 $5.10

Formula used:

To calculate gross pay by differential piecework:

Step 1. Calculate the pay at each level by multiplying the output units and the rate per unit for that level.

Level pay=Output quantity×Rate per unit

Step 2. Calculate the total gross pay by adding the pays from each level.

Calculation:

To find total gross pay for Goodrich whose total number of garments produced is 109, calculate his pay by the pay schedule at level 1 for 50 garments, level 2 for 50 garments and level 3 for 9 garments as 109=50+50+9 and then add the totals.

Now to calculate his level 1 pay, consider number of garments produced and rate per garment,

50 and $3.60

Apply the formula, Level pay=Output quantity×Rate per unit:

Level 1 pay=50×3.60

As,

    3.60×     50_180.00__

So, Level 1 pay=$180.00.

Now to calculate his level 2 pay, consider number of garments produced and rate per garment,

50 and $4.25

Apply the formula, Level pay=Output quantity×Rate per unit:

Level 2 pay=50×4.25

As,

    4

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