Question

Calculate gross pay for each of the following employees of Launchpad Co. The company offers a regular wage rate of $8.20/hour to all employees. Under an incentive plan in place for all employees, this rate increases for any employee who can meet weekly production goals. The increased rates and corresponding thresholds that must be met are as follows: $9.40/hour for producing at least 2,000 units $10.60/hour for producing at least 2,800 units $11.80/hour for producing at least 3,700 units $13/hour for producing at least 4,700 units All employees are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Bronson Chau worked 42 hours and produced 1,870 units. Gross Pay = $

2:Pauline Myers worked 42 hours and produced 3,650 units. Gross Pay = $

3:Angela Smith worked 52 hours and produced 2,160 units. Gross Pay = $

4:Angelo Balducci worked 47 hours and produced 4,790 units. Gross Pay = $

Answer 1

Answer

Employees wil get Overtime pay if they are worked more than 40 hours per week. (As per Fair Labour Standards Act)

Overtime wage rate that is 1.5 times their respective regular wage rates.

1:Bronson Chau

Hours worked = 42

Unit Produced = 1,870

(Since, Bronson Chau produced less than 2000 units he/she will be eligible for only regular wage rate)

Wage rate per Hour = $8.20

Overtime wage rate =   $8.20 * 1.5 = $12.3

(a) Regular wage = 40 hours * $8.20 = $328

(b) Overtime wage = 2 hours * $12.3 = $24.6

Gross pay (a+ b) = $328 + $24.6 = $352.6

2:Pauline Myers

Hours worked = 42

Unit Produced = 3,650

(Since, Pauline Myers produced at least 2,800 units he/she will be eligible for increased wage rates)

Wage rate per Hour = $10.60

Overtime wage rate =   $10.60 * 1.5 = $ 15.9

(a) Regular wage = 40 hours * $10.60 = $ 424

(b) Overtime wage = 2 hours * $15.9 = $ 31.8

Gross pay (a + b) = $424 + $31.8 = $455.8

3:Angela Smith

Hours worked = 52

Unit Produced = 2,160

(Since, Angela Smith produced at least 2,000 units he/she will be eligible for increased wage rates)

Wage rate per Hour = $9.40

Overtime wage rate =   $9.40 * 1.5 = $ 14.1

(a) Regular wage = 40 hours * $9.40 = $ 376

(b) Overtime wage = 12 hours * $14.1 = $ 169.2

Gross pay (a + b) = $376 + $169.2 = $545.2

4:Angelo Balducci

Hours worked = 47

Unit Produced = 4,790

(Since, Angelo Balducci produced at least 4,700 units he/she will be eligible for increased wage rates)

Wage rate per Hour = $13

Overtime wage rate =   $13 * 1.5 = $ 19.5

(a) Regular wage = 40 hours * $13 = $ 520

(b) Overtime wage = 7 hours * $19.5 = $ 136.5

Gross pay(a + b) = $520 + $136.5 = $ 656.5