Question

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would be ____ per unit. a. $2.55 b. $2.95 c. $1.95 d. $3.15

Answer 1

Answer:

The right answer is option (A).

Explanation:

According to the scenario, given data is :

Time required for one unit = 12 Min

Payment for job =  $12.75 / Hour

So, payment for job per minute = $12.75 / 60 = $0.2125 / minute

Hence, Rate per piece = rate/minute × time required for one unit

= $0.2125 × 12

= $2.55

Hence the most appropriate answer is option (A).