In: Operations Management
As an entry level new clubhouse manager at the Country Club you have been assigned the position of scheduling and preparing and monitoring overtime pay for the club's unionized employees. You have scheduled two employees for the last week of December where overtime pay conditions have occurred. This was a hectic period with numerous holiday functions and the New Year's celebration. Overtime pay will be paid at the rate of 1.5 times the base rate. Sami worked two different jobs at different pay rates. Job #1 - Waiter...paid $12 per hour for 40 hours (40 hours X $12 per hour = $480) Job #2 - Prep Cook...paid $15 per hour for 8 hours (8 hours X $15 per hour = $120) What was Sami's base pay rate? Show and identify your work and how you arrived at your answer. What was Sami paid in total for this week of work? Show and identify your work and how you arrived at your answer
Solution
Step I
Sami’s total compensation =40*12$ + 8*15$ = 480$ + 120$ = 600$
Sami’s regular rate = Total compensation / total number of hours worked
= $600/48 = 12.50$ per hour
Step II
Overtime rate = regular rate * 1.5 times = 12.50$ * 1.5 = 18.75$ per hour
Overtime hours worked by Sami = 8
Total overtime compensation = 18.75$ * 8 = 150$
Step III
Regular earning of Sami = 40 hours of regular work in a week *regular rate found in step I
= 40 *12.50$ = 500$
Step IV
Total weekly wages = regular earning + overtime earning
= 500$ + 150$ = 650$