Question

1. Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $81.20 plus tips for a 40-hour workweek. Lieber's weekly tips usually range from $275 to $390.

Round your answers to the nearest cent.

a. Under the Fair Labor Standards Act, the minimum amount of wages that Lieber must receive for a 40-hour workweek is

2. Carrie Overwood works fluctuating work schedules. Besides her fixed salary of $1,051 per week, her employment agreement provides for overtime pay at an extra half-rate for hours worked over 40. This week she worked 48 hours. Compute the following amounts.

Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent.

a. The overtime earnings
b. The total earnings

c. If this was a BELO plan with a pay rate of $23.45 per hour and a maximum of 48 hours, how much would Overwood be paid for 44 hours?

3. During the first week in November, Erin Mills worked 43.00 hours and produced 1,217 units under a piece-rate system. The regular piece rate is $0.32 a unit. Mills is paid overtime according to the FLSA ruling for overtime work under a piece-rate system. Compute the following amounts.

Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent.

a.	The piecework earnings
b.	The regular hourly rate
	The overtime hourly rate
c.	The overtime earnings
d.	The total earnings

4. Jill Connor is employed as a salesperson in the men's department of Fashion Line. In addition to her weekly base salary of $349, Connor is paid a commission of 2% on her total net sales for the week (total gross sales less any customer returns). During the past week, to promote the sale of its fine cashmere sweaters, Fashion Line agreed to pay Connor an additional PM (push money) of 3% of the total net sales of cashmere sweaters. Connor's weekly sales tally is given below.

Item	Gross Sales	Customer Returns
Regular sweaters	$391	$55
Cashmere sweaters	1012	74
Ties	177	0
Dress shirts	449	38
Sports shirts	199	29

Compute Connor's total weekly earnings, showing her (a) weekly base salary, (b) commission, (c) PM, and (d) total weekly earnings. Round your intermediate and final answers to the nearest cent.

a.	Weekly base salary:
	Weekly gross sales
	Less customer returns
	Weekly net sales
b.	Commission: $ × 2%
	Weekly gross sales of cashmere sweaters
	Less customer returns
	Weekly net sales of cashmere sweaters
c.	Push money (PM): $ × 3%
d.	Total weekly earnings

Answer 1

Ans1.a. Under the Fair Labor Standards Act, the minimum amount of wages that Lieber must receive for a 40-hour workweek is $290 per week ($7.25 * 40 Hours)

Ans 2

Overhood basic hourly wage = 1051/40 = 26.275 = 26.27 (rounded off)

Overtime rate is base rate multiplied by 1.5

= 26.27 * 1.5

= 39.405

= 39.40(rounded off)

Overhood makes $39.40 per hour for every hour that she works above 40 hours per week.

If she worked 48 hours in the given week, her overtime pay would be

39.40 * 8 = 315.2

2a. Overhood made a $315.2 in overtime earnings.

To get her total earning, we add this overtime earning to her base pay

1051 + 315.2 = 1366.2

2b. Overhood’s total earning is $1366.2

2c. If this was a Belo plan. In the question it is mentioned that Belo plan’s pay is $23.5 per hour for a maximum of 48 hours.

Hence, Overhood wages at straight time are determined by multiplying pay rate by her maximum number of hours.

23.5 * 48 = 1128

Her overtime rate would be 23.5 * 1.5 = 35.25

Overhood must be paid $35.25 per hour for 8 hours, as she must get overtime pay for the hours in Belo plan above and beyond 40 hours per week.

35.25 * 8 = 282

Her overtime pay in Belo plan is $282 per week

To calculate her total pay, we will add her pay at straight time to her overtime pay

= 1128 + 28 = 1410

In this case, overhood would be paid $1410 under the Belo plan.

Ans 3

a. The piecework earnings = 1,217 units * 0.32/unit = $389.44

b. The regular hourly rate = $389.44 / 43 hours = $9.05/hour

The overtime hourly rate 1.5 * $9.05/hour = $13.57/hour

c. The overtime earnings 3 * 13.57/hour = $40.71, but 3 * ($13.57-$9.05) = $13.56 which is the amount over the regular rate.

d. The total earnings $389.44 + $13.56 = $403

Ans 4. Computation of Connor's total weekly earnings,

a.	Weekly base salary:		349
	Weekly gross sales	2228
	Less customer returns	196
	Weekly net sales	2032
b.	Commission: $ 2032 × 2%		40.64
	Weekly gross sales of cashmere sweaters	1012
	Less customer returns	74
	Weekly net sales of cashmere sweaters	938
c.	Push money (PM): $938 × 3%		28.14
d.	Total weekly earnings		417.78