Question

During the first week in November, Erin Mills worked 45 hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.45 a unit. Mills is paid overtime according to the FLSA ruling for overtime work under a piece-rate system.

Compute:
a. The piecework earnings
b. The regular hourly rate
c. The overtime earnings
d. The total earnings

Answer 1

To calculate the different earnings, follow these steps: a) Piecework Earnings: Multiply the number of units produced by the regular piece rate. b) Regular Hourly Rate: Divide the piecework earnings by the number of hours worked. c) Overtime Earnings: Subtract the regular piecework earnings from the total earnings to find the overtime earnings. d) Total Earnings: Add the piecework earnings to the overtime earnings.

Step-by-step explanation:

To calculate the different earnings, we need to follow these steps:

a. Piecework Earnings: Multiply the number of units produced (1,275) by the regular piece rate ($0.45) per unit. Piecework earnings = 1,275 * $0.45 = $573.75

b. Regular Hourly Rate: Divide the piecework earnings by the number of hours worked (45). Regular hourly rate = $573.75 / 45 = $12.75 per hour

c. Overtime Earnings: Subtract the regular piecework earnings (1,275 * $0.45 = $573.75) from the total earnings (45 * regular hourly rate) to find the overtime earnings. Overtime earnings = (45 * $12.75) - $573.75 = $150 - $573.75 = -$423.75 (since the overtime earnings are negative, there were no overtime hours)

d. Total Earnings: Add the piecework earnings ($573.75) to the overtime earnings ($0) to find the total earnings. Total earnings = $573.75 + $0 = $573.75