ACCA MA · Chapter 5 · Question 6 of 10
A worker is paid a piecework rate of $0.80 per unit, with a guaranteed minimum of $12 per hour based on a weekly calculation. In one week he worked 38 hours and produced 520 units. What is his gross pay for the week?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) $456
Explanation
Piecework earnings = 520 x 0.80 = $416. Guaranteed minimum = 38 x 12 = $456. The worker receives the higher of the two, so gross pay is $456.
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