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Audrey works in a factory. She receives a salary of \(\$ 8\) per hour and piecework pay of 12 cents per unit produced. Last week she worked 38 hours and produced 755 units. a. What was her piecework pay? b. What was her total hourly pay for the week? c. What was her total pay for the week? d. What would her total weekly salary have been if she produced 0 units?

Short Answer

Expert verified
a. Her piecework pay was \(\$ 90.60\). b. Her total hourly pay for the week was \(\$ 304\). c. Her total pay for the week was \(\$ 394.60\). d. If she produced 0 units, her total weekly salary would have been \(\$ 304\).

Step by step solution

01

Calculate the piecework pay

To find Audrey's piecework pay, the number of units she produced needs to be multiplied by the piecework pay per unit, i.e. \( 755 \times 0.12 \)
02

Calculate the hourly pay

To calculate Audrey's hourly pay for the week, multiply the number of hours she worked by her hourly wage, i.e. \( 38 \times 8 \)
03

Calculate the total pay

The total pay for the week can be calculated by adding the piecework pay from step 1 and the hourly pay from step 2.
04

Determine the total without piecework

If Audrey hadn't produced any units, her total weekly salary would simply be her hourly wage multiplied by the number of hours worked, i.e. \( 38 \times 8 \)

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Key Concepts

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

Salary Calculation
Understanding how to calculate salaries is essential for workers paid both hourly and by the number of units they produce, known as piecework. Audrey's salary calculation in the provided exercise involves combining an hourly wage with piecework earnings. To make this more digestible, we can look at it as a two-part process: first, Audrey's earnings from the hourly wage are calculated by multiplying the number of hours worked by her hourly rate. In the example, Audrey works 38 hours at an hourly rate of \(8, leading to an hourly earnings calculation of 38 hours times \)8 per hour.

Next, her piecework earnings are calculated separately. To find this, the number of units produced is multiplied by the earnings per unit. For Audrey, this means multiplying the 755 units she produced by the 12 cents she earns per unit. Such calculations demonstrate the importance of careful recording and accuracy when dealing with complex salary structures. Combining these two amounts provides Audrey's total earnings for the week, which reflects the overall contribution of her time and productivity.
Unit Production Earnings
Piecework pay systems reward employees based on the amount they produce or the number of tasks they complete. In Audrey's case, she earns an additional 12 cents per unit she produces, incentivizing higher productivity. Calculating unit production earnings involves simply multiplying the quantity of units by the pay rate per unit. For instance, Audrey produced 755 units at a rate of 12 cents per unit, hence her piecework pay is 755 units times 12 cents. This method of payment is commonly seen in manufacturing or task-oriented jobs where the quantity of output can be easily quantified.

Employers benefit from piecework pay systems by directly linking payroll costs to production levels. Workers are motivated to be more productive since their pay is proportional to their output. However, it is crucial for workers to understand how this can affect their overall earnings and for employers to ensure fair compensation for each unit produced. From a practical standpoint, calculating unit production earnings is a straightforward multiplication but requires vigilance to ensure the correct rates are applied.
Hourly Wage
An hourly wage is a rate of pay given for each hour of work. For many employees like Audrey, understanding how to calculate earnings based on an hourly wage is key to managing personal finances. Audrey's hourly wage is \(8; therefore, for every hour she works, she earns that amount. To calculate her total hourly pay for the week, we multiply the total hours worked by her hourly rate, giving us her basic pay before additional earnings such as overtime or bonuses are added.

In this example, Audrey works 38 hours, so the calculation would be 38 hours times \)8 per hour, resulting in her total hourly earnings. This calculation does not require complex math but does require careful tracking of hours worked. An accurate record of time worked is fundamental to ensuring correct payment. Employers must comply with minimum wage laws and compensate employees for all the time they are entitled to. For students and workers alike, understanding how to calculate hourly wage payments is a practical skill with real-world applications.

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