The hourly rate for an employee is £5.00 per hour with an agreed rate of production of 250 units per hour. An employee produces 3.000 units in 8 hours.

If the employee is paid piecework on the basis of production. the piecework earnings will be the number of units produced multiplied by the rate per unit. As the rate per unit is £0.02 (£5.00-;- 250 units) the employee will receive £60.00

(3,000 units x £0.02).

AppendixLO1