P3-4 Payroll for piece-rate wage system Collier Manufacturing Co. operates on a modified wage plan. During one week’s operation, the following direct labor costs were incurred: Units Completed Employee Piece Rate per 100 Units M T W T F A. Travis. ..... $1.20 6,800 7,100 6,500 8,000 4,800 L. Nessman . . . 1.10 6,300 6,400 2,900 2,800 7,000 B. Smithers . . . 1.30 6,200 6,100 7,100 6,000 2,800 The employees are machine operators. Piece rates vary with the kind of product being produced. A minimum of $70 per day is guaranteed to each employee by union contract. Required: 1. Compute the weekly earnings for Travis, Nessman, and Smithers. Vanderbeck, Edward J.; Mitchell, Maria R.. Principles of Cost Accounting (p. 170). Cengage Learning. Kindle Edition.
