Example 2-24 Paul Fritz produced 3,073 pieces in a 44-hour workweek and is paid 18¾ cents for every unit produced. Fritz earned overtime at a piece rate of one and one-half times the regular rate for all pieces produced during overtime hours. Of the total 3,073 pieces produced, 272 were produced in the 4 overtime hours. Fritz's total piecework and overtime earnings are as follows: 2,801 × $0.1875 = $525.19 piecework earnings 272 pieces × $0.2813 ($0.1875 × 1.5) = $76.51 overtime earnings $525.19 + $76.51 = $601.70 piecework and overtime earnings During the first week in November, Erin Mills worked 45½ hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.45 a unit. Mills had agreed with her employer prior to the performance of the work that she would be paid one and one-half times the regular piece rate for all pieces produced during the overtime hours. Assume that her production totals for the week were 1,075 pieces during regular hours and 200 pieces during overtime hours. Compute the following amounts. Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent. a. The piecework earnings $fill in the blank 1 b. The overtime earnings $fill in the blank 2 c. The total earnings $fill in the blank 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Example 2-24

Paul Fritz produced 3,073 pieces in a 44-hour workweek and is paid 18¾ cents for every unit produced. Fritz earned overtime at a piece rate of one and one-half times the regular rate for all pieces produced during overtime hours. Of the total 3,073 pieces produced, 272 were produced in the 4 overtime hours. Fritz's total piecework and overtime earnings are as follows:

2,801 × $0.1875	=	$525.19 piecework earnings
272 pieces × $0.2813 ($0.1875 × 1.5)	=	$76.51 overtime earnings
$525.19 + $76.51	=	$601.70 piecework and overtime earnings

During the first week in November, Erin Mills worked 45½ hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.45 a unit.

Mills had agreed with her employer prior to the performance of the work that she would be paid one and one-half times the regular piece rate for all pieces produced during the overtime hours. Assume that her production totals for the week were 1,075 pieces during regular hours and 200 pieces during overtime hours. Compute the following amounts.

Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent.

a. The piecework earnings	$fill in the blank 1
b. The overtime earnings	$fill in the blank 2
c. The total earnings	$fill in the blank 3

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