Incentive Rates9/26/2011

DO NOW…Robert works for a wholesale

drug warehouse. He is compensated based on the number of lines he fills from an order form. His job is to read the order, go to the proper shelf in the warehouse, and pull from that shelf the number of items ordered on that line. He is paid $.04 for each line he fills. Robert filled 15,193 line items this pay period.

What were his gross earnings?

$607.72

DO NOW…

15, 193 X $.04 =

$607.72

Time vs. Incentive Rates Time:

Depend only on the actual time an employee is on the job

Rate per hour, per day, per week, etc. Incentive:

Based on production Pay an employee for actual performance

on the job Piecework Commission

Piecework You are paid for each

item of work that you produce Ex: Garment industry -

paid for the number of pieces completed during the pay period

Formula: Gross pay = Rate per

item X number produced

Piecework ExampleA truck driver drives 680

miles and is paid a piecework rate of $.32 per mile. What are his total gross earnings?

Gross pay = Rate per item x number produced

$.32 x 680 = $217.60

Your TurnStacy is paid $.73 for sewing a jacket collar,

$.86 for a sleeve with cuffs, and $.94 for a lapel. One week she sewed 318 jacket collars, 112 sleeves with cuffs and 37 lapels. Find her GROSS earnings?

ITEM RATE NUMBER TOTAL

Jacket collars $.73 X 318 = $232.14Sleeves with cuffs $.86 X 112 = $96.32

Lapels $.94 X 37 = $34.78$232.14 + $96.32 + $34.78 = $363.24

Class WorkGet your workbooksTurn to Section 1-4 on Page 3Complete questions 1-6