CA Inter P4 · Chapter 3 · Question 11 of 11
Under Merrick's multiple piece rate system, the normal piece rate is paid up to 83% efficiency, 110% of the piece rate between 83% and 100% efficiency, and 120% of the piece rate above 100% efficiency. Standard output is 200 units per day and the piece rate is ₹10. A worker producing 190 units in a day earns:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) ₹2,090
Explanation
Efficiency = 190 / 200 = 95%, which lies between 83% and 100%, so 110% of the piece rate applies: ₹10 x 110% = ₹11 per unit. Earnings = 190 x ₹11 = ₹2,090.
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