Question

Kyle Forman worked 48 hours during the week for Erickson Company at two different jobs. His pay rate was $14.90 for the first 40 hours, and his pay rate was $11.00 for the other 8 hours. Round your overtime rate and other interim computations to two decimal places and use the rounded amount in subsequent computations.

Round the final answers to the nearest cent. Determine his gross pay for that week if the company uses the one-half average rate method.

a. Gross pay

b. If prior agreement existed that overtime would be paid at the rate for the job performed after the 40^th hour, the gross pay would be

Answer 1

a.)	We are given that $ 14.90 paid for first 40 hours and $11.00 for next 8 hours.
	So, net pay would be 14.90 x 40+11.00 x 8 = $684
	Now we need to find bonus pay using one-half rate method.
	Bonus = Over time x half of the average hourly rate
	Average hourly rate = income earned/total number of hours
	= 684 / 48
	= $ 14.25
	Hence bonus = 8 x 14.25/2= $57
	Gross pay using one-half average method= net pay + bonus
	=684 + 57
	= $ 741
b.)	Normal Pay	684	( 14.90 x 40 + 11.00 x 8)
	Add: Overtime	44	(11.00 x 8 x 1/2)
	Gross Pay	728