Labour Piecework Formula

Labour Piecework Formula

Piecework is production based labour payment system. in piecework payment system labour is paid on the bases of unit produced by them. Formula for Piecework payment is

Labour payment = Unit Produced x Rate per Unit

Example

Total units produced by the labour= 6000

Rate of Labour payment per unit is = $ 5

Calculate labour payment?

Solution

 Labour payment = Unit Produced x Rate per Unit

= 6000 x 5

= 30000 $