MUKULUMPE CO is a manufacturer of a product used in the industry. The product is assembled from various parts and the production operatives are paid on a piecework basis. The piecework scheme to be applied to all good production in a week is as follows. 0 – 100 Units:                          K0.40 per unit 101- 200 Units                           K0.48 per unit 201 – 300 Units                     K0.56 per unit Over 300 units:                      K0.64 per unit Rejected production does not qualify for payment. It should also be noted that only additional units qualify for the higher rates. The following output was achieved by the three operatives during the week ending 31 October 2021. Operative                                                                            A                             B                             C Output (including rejects)                                            520 units              600 units              480 units Rejects                                                                                 19 units                 62 units 10  units Calculate separately the earnings of each of operatives A, B and C for the week ending 31 October 2021. State two advantages to an employer if they use a piecework scheme. State two disadvantages to an employer if they use a piecework scheme.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 32BEB: During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine...
icon
Related questions
Question
100%

MUKULUMPE CO is a manufacturer of a product used in the industry. The product is assembled from various parts and the production operatives are paid on a piecework basis. The piecework scheme to be applied to all good production in a week is as follows.

0 – 100 Units:                          K0.40 per unit

101- 200 Units                           K0.48 per unit

201 – 300 Units                     K0.56 per unit

Over 300 units:                      K0.64 per unit

Rejected production does not qualify for payment.

It should also be noted that only additional units qualify for the higher rates.

The following output was achieved by the three operatives during the week ending 31 October 2021.

Operative                                                                            A                             B                             C

Output (including rejects)                                            520 units              600 units              480 units

Rejects                                                                                 19 units                 62 units 10  units

  • Calculate separately the earnings of each of operatives A, B and C for the week ending 31 October 2021.
  • State two advantages to an employer if they use a piecework scheme.
  • State two disadvantages to an employer if they use a piecework scheme.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Theory of Constraints (TOC)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College