Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows:
|1.||Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate).|
|2.||If the third decimal place is 5 or more, round to the next higher cent.|
|3.||If the third decimal place is less than 5, simply drop the third decimal place.|
|Examples:||Monthly rate $1,827
Weekly rate ($1,827 × 12)/52 = $421.615 rounded to $421.62
Hourly rate $421.62/40 = $10.540 rounded to $10.54
O.T. rate $10.54 × 1.5 = $15.81
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
John Dilcher is paid an hourly rate of $18.50 per hour, and he worked 49 hours this week. His gross pay is:
|40 hours × $18.50||=||$740.00|
|9 hours × $27.75 ($18.50 × 1.5)||=||249.75|
|Total gross pay||=||$989.75|
John Porter is an hourly employee of Motter Company located in New York City. This week, Porter had to travel to the company’s regional office in Albany. He left Sunday at noon and arrived in Albany at 3:00 P.M. During the week, he worked his normal 40 hours in the Albany office (Monday through Friday—9 A.M. to 5 P.M.). In addition, he attended the company’s 5-hour work training session on Wednesday evening. Porter’s hourly rate of pay is $15.65 per hour.
Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent.
a. Porter’s overtime earnings for the week are
b. Porter’s total earnings for the week are
The value of porter’s overtime earnings for the week are:
Porter’s Overtime Earnings = (Training Hours + Traveling Hours from Newyork to Albany)*Wage Rate Per Hour*1.5
Here, Training Hours = 4, Traveling Hours = 3 [the difference between the time of leaving New York (which is 12:00 P.M. as Porter left at noon) and the time of arrival at Albany (which is 3:00 P.M.)] and Wage Rate Per Hour = $15.65.
Using these values in the above formula, we get,
Porter’s Overtime Earnings = (5 + 3)*15.65*1.50 = $187.80
The value of Porter’s total earnings for the week is determined as follows:
Porter’s Total Earnings = Total Normal Working Hours*Wage Rate Per Hour + Overtime Earnings
Using the value of overtime earnings calculated above in Part a) and information provided in the question, we get,
Porter’s Total Earnings = 40*15.65 + 187.80 = $813.80