Chapter 9.I, Problem 20RE

### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Chapter
Section

### 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 Fox, B. 174 ______

To determine

To calculate: The total gross pay of last week for Fox, B. who is a worker at Euro Couture, a manufacturer of women’s apparel and he produced 174 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 Fox whose total number of garments produced is 174, calculate his pay by the pay schedule at level 1 for 50 garments, level 2 for 50 garments, level 3 for 50 garments and level 4 for 24 garments as 174=50+50+50+24 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, 4.25× 50_212.50__ So, Level 2 pay=$212.50.

Now to calculate his level 3 pay, consider number of garments produced and rate per garment,

50 and \$4.50

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

Level 3 pay=50×4

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