Question 1 (5)

There are two basic methods of wage payment: (1) Hourly wages and (2) Piecework pay. Give five examples where piecework pay is more suitable.

Question 2 (10)

Calculate the earnings of workers A and B under Piecework Pay and Taylors Differential Piecework system from the following:

Standard time allowed 50 units per hour.

Normal time rate per hour R100.

Differential to be applied:

80% of Piecework rate below standard.

120% of Piecework rate at or above standard.

In a day of 8 hours A produced 300 units and B produced 450 units.

Question 3 (15)

He keeps record of all jobs done at his workshop and provides you with the following records for Job 600 carried out in February 2006

Direct materials issued			Direct labour
01/02/2006	R 2 500		Skilled labour:
03/02/2006	R 3 400		60 hours @ R150 per hour
09/02/2006	R 4 100		Semi-skilled labour:
	R10 000		45 hours @ R80 per hour

Workshop overheads are absorbed at the rate of 80% o direct labour cost.

Job 600 was invoiced to the customer at a mark-up of 50% of the cost of production.

Required:

1. Calculate the cost of Job 600.
2. Show how the job was invoiced to the customer.