Q.Under Taylor's Differential Piece Rate System, the standard output is fixed at 200 units per day and the Normal Piece Rate is ₹10 per unit. The applicable rates are 83% of the Normal Piece Rate for output below standard, and 175% of the Normal Piece Rate for output at or above standard. Compute the wages of:

Taylor's Method applies one of two rates to a worker's ENTIRE output, depending on whether that output reaches the standard.

Step 1 — Determine the two applicable rates:

• Lower rate (below standard) = 83% of Normal Piece Rate = 83% × ₹10 = ₹8.30 per unit
• Higher rate (at or above standard) = 175% of Normal Piece Rate = 175% × ₹10 = ₹17.50 per unit

1. Worker P — 180 units (below the 200-unit standard): Since 180 < 200, ALL 180 units are paid at the lower rate. Wages = 180 × ₹8.30 = ₹1,494
2. Worker Q — 220 units (at or above the 200-unit standard): Since 220 ≥ 200, ALL 220 units are paid at the higher rate. Wages = 220 × ₹17.50 = ₹3,850 …

A very common error is applying the higher rate only to the units ABOVE the standard (e.g. paying Q's first 200 units at the lower rate and only the extra 20 units at the higher rate) — this is wrong. Under Taylor's Method, once a worker's output reaches or excee …