In: Accounting
Calculate gross pay for each of the following employees. All 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:Anita Workman receives tips from customers as a standard
component of her weekly pay. She is paid $2.60/hour by her employer
and receives $291 in tips during the most recent 44-hour
workweek.
Gross Pay = $
2:Cole Earnhardt receives tips from customers as a standard
component of his weekly pay. He is paid 2.18/hour by his employer
and receives $430 in tips during the most recent 43-hour
workweek.
Gross Pay = $
3:Calista Flood receives tips from customers as a standard
component of her weekly pay. She is paid $4.20/hour by her employer
and receives $348 in tips during the most recent 34-hour
workweek.
Gross Pay = $
4:Bethany Pugh receives tips from customers as a standard
component of her weekly pay. She is paid $3.54/hour by her employer
and receives $168 in tips during the most recent 52-hour
workweek.
Gross Pay = $
Note : For all the scenarios, we have assumed a 40-hour normal work week and hence any hours worked above 40 hours is eligible for over-time pay.
Calculation of Gross Pay in all 4 cases :
S. No. | Case Name | Particulars | Calculation | Amount ($) |
1 | Anita | Regular pay | 2.6$*40 hours | 104 |
Over-time pay | 3.9$*4 hours | 15.6 | ||
Tips | NA | 291 | ||
Gross Pay | 410.6 | |||
S. No. | Case Name | Particulars | Calculation | Amount ($) |
2 | Cole Earnhardt | Regular pay | 2.18$*40 hours | 87.2 |
Over-time pay | 3.27$*3 hours | 9.81 | ||
Tips | NA | 430 | ||
Gross Pay | 527.01 | |||
S. No. | Case Name | Particulars | Calculation | Amount ($) |
3 | Calista Flood | Regular pay | 4.2$*34 hours | 142.8 |
Over-time pay | NA | 0 | ||
Tips | NA | 348 | ||
Gross Pay | 490.8 | |||
S. No. | Case Name | Particulars | Calculation | Amount ($) |
4 | Bethany Pugh | Regular pay | 3.54$*40 hours | 141.6 |
Over-time pay | 5.31$*12 hours | 63.72 | ||
Tips | NA | 168 | ||
Gross Pay | 373.32 | |||