2. Caculating Straight piecewok wages
• A piecework pay rate schedule is based not on
time but on production output the icentive is
that the more units the worker produces the
more money he or she makes. a straight
piecework plan is worker receives a certain
amount of pay per units give of output
regardless of output quantity. a differential
piecework plan gives workes a grater incentive to
in crease output because the rate per unit
increases as output goes up.
3. Step to calculate pay by piecework
1. straight piecework
step 1 : multiply the number of output units by the rate units
Total gross pay = output X rate per unit
2. difrential piecework
step 1 : multiply the number of output units at the each level
by the rate per units of that level
step 2 : find the total gross by adding the total from each level
4. Example :
barb nelson work on hat assembly line .
barb get paid at a straight piecework rate of
$0.35 perh hat. what as barb total gross last
week if she produced 1.655 hat ?
5. Sulution strategy :
total gross pay = output quantity X rate per
units
total gross pay = 1,655 X 0.35
= $579.25
