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Chapter 6: Problem 13

Bill works for the Stuff-It Mailing Service. He receives 25 cents for each document he puts together and prepares for mailing. Last week, Bill prepared \(2,000\) documents for mailing for a local department store. He received a check with gross pay of \(\$ 474\) and is certain that the amount is incorrect. a. What is Bill's correct total piecework pay? b. How much does his boss owe him?

Short Answer

Expert verified
a. Bill's correct total piecework pay is \$500. b. His boss still owes him \$26.

Step by step solution

01

Calculate Correct Total Piecework Pay

Firstly calculate how much money Bill should have made by preparing 2000 documents. Since his rate is 25 cents per document, you will perform the calculation: \(2000\) documents * \(\$0.25\) per document = \(\$500\).
02

Calculate Owed Amount

Secondly, to find out how much Bill's boss owes him, subtract the incorrect amount he was paid (\$474) from the correct total (\$500). So, \$500 - \$474 = \$26. This is the amount that his boss still owes him.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Understanding Piecework Pay
Piecework pay is a compensation model where an employee is paid a fixed rate for each unit of work produced, rather than receiving an hourly wage or salary. This method is commonly used in environments where workers are expected to produce a quantifiable amount of work, such as assembling products or preparing documents for mailing.
  • Advantages of piecework pay include incentivizing workers to increase productivity, as their income directly correlates with their output.
  • It also provides employers with a clear understanding of labor costs, since pay aligns with actual production.
  • However, it may lead to quality issues as workers rush to produce more units.
In Bill's case at the Stuff-It Mailing Service, his piecework pay is 25 cents per document. This means if he prepares more documents, he earns more money, directly linking his effort to his income.
Gross Pay Calculation Simplified
Calculating gross pay using the piecework system is straightforward. The formula is simple: multiply the number of units produced by the pay rate per unit.
For Bill, this meant taking the 2000 documents he processed and multiplying by his rate per document, which is $0.25. The calculation looks like this:
  • Number of units (documents) = 2000
  • Pay rate per document = $0.25
  • Gross pay = 2000 * $0.25 = $500
Understanding this simple multiplication helps ensure employees are compensated fairly and allows them to predict their earnings based on output.
Applying Problem-Solving Strategies
Problem-solving strategies are crucial in scenarios where pay discrepancies occur, like the issue Bill faced. Below are some beneficial strategies:
  • Verify Calculations: Always double-check your math. In Bill's case, verifying his piecework pay was essential to identifying the incorrect payment.
  • Compare with Records: Keep accurate personal records of output to ensure employer documentation matches your work.
  • Communicate Clearly: Discuss any discrepancies directly with your employer, providing evidence to support your claims.
  • Seek Resolution: If discrepancies persist, escalate the issue through appropriate channels like HR or a labor representation.
By following these steps, employees like Bill can effectively address discrepancies and ensure they are fairly compensated for their work.

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Most popular questions from this chapter

Roger wants to have 400 copies of his resume printed. His local print shop charges \(\$ 21.50\) for the first 200 copies and \(\$ 10\) for every 100 additional copies. a. How much will the 400 copies cost, including a sales tax of 6\(\% ?\) b. If the number of sets of 100 resumes is represented by \(x,\) express the cost of the resumes, \(r(x)\) , as a piece wise function of \(x .\)

Arielle receives a piecework rate of 10 cents per unit from the Wiggy Factory. Her production record for last week was affected by a machinery breakdown on Tuesday. Her production results were: Monday, 375 units; Tuesday, 22 units; Wednesday, 410 units; Thursday, 390 units; and Friday, 390 units. a. What is the mean number of units produced per day? b. What is the median number of units produced? c. What is the mode number of units produced?

Colby and Cheryl work in different local supermarkets. Colby regularly earns \(8.90 per hour, and he is paid time-and-a-half for each hour of overtime he works. Cheryl regularly earns \)7.10 per hour, and she is paid double time for an hour of overtime. Who earns more for one hour of overtime? How much more?

Amy regularly works 20 hours per week at Pook鈥檚 Dry Cleaners from Monday through Friday. She earns $8.10 per hour and receives double-time pay for working Sundays. Next week she will work her regular 20 weekday hours, and an additional eight hours on Sunday. What will her total pay be for the week?

Appel's Music Store pays its sales staff a commission of 9.5\(\%\) of the first \(\$ 1,000\) in sales and 15.5\(\%\) of the balance of sales. Alex, the store's drum expert, received \(\$ 1,234.25\) in commission last week. What were his total sales for the week?
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