In: Accounting
Stella the manager earns $16 per hour. The waiter works 48 hours
during a week instead of the scheduled time of 40 hours. The
overtime pay scale is time and a half, or 150 per cent of the
regular wage.
The overtime premium amount is:
Computation of over time premium Amount :
Actual hrs worked 48 hrs
Standard hrs 40 hrs
Overtime hrs 8 hrs
Rate per hr $16
Pay scale on overtime 150℅ of regular pay
Overtime premium = 8hrs ×( $16 ×150℅) = $192.
Total wage including overtime = $832 ($640+$192).