Q.A worker's output for a day is 220 units. The standard output is 200 units per day, and the Normal Piece Rate is ₹10 per unit. Compute the worker's wages for this output under:

The same 220-unit output is paid completely differently depending on which wage scheme is used — this is exactly why the choice of scheme matters to both worker and employer.

1. Straight Piece Rate: Wages = 220 × ₹10 = ₹2,200 (No special treatment for exceeding the standard — every unit, including the 201st–220th, is paid at the same flat ₹10.)
2. Taylor's Differential Piece Rate: Efficiency = 220 ÷ 200 × 100 = 110%, which is at/above the 100% standard. Rate = 175% of Normal Piece Rate = 175% × ₹10 = ₹17.50 per unit, applied to ALL 220 units. Wages = 220 × ₹17.50 = ₹3,850
3. Merrick's Differential Piece Rate: Efficiency = 110%, which falls in the ≥100% band. Rate = 120% of Normal Piece Rate = 120% × ₹10 = ₹12 per unit, applied to ALL 220 units. Wages = 220 × ₹12 = ₹2,640 Comparison:

The most common mistake here is applying Taylor's or Merrick's higher rate only to the 20 units ABOVE the 200-unit standard, rather than to the worker's ENTIRE 220-unit output — both differential schemes apply their applicable rate to the WHOLE o …