Question

Jim earns a regular hourly rate of $5 and a premium hourly rate of $6. He worked 45 hours last week. What is his gross pay?

A. $200
B. $225
C. $230

Answer 1

Option C. $230

Explanation:

Jim earns a regular hourly rate of $5 and a premium hourly rate of $6.

In most of the working place regular hours are 8 hours in 5 days a week = 40 hours

and he worked 45 hours last week.

so his regular hours are 40 hours

and premium hours are 45 - 40 = 5 hours

Now we calculate his gross pay.

(40 × 5) + ( 5 ×6 ) = 200 + 30 = $230

Jim's gross pay would be $230.

Option C. $230

Answer 2

we assume that Jim works 8 hrs per day. In this case, the maximum of days Jim can work in regular hours is 5 days. This leaves 5 hours in total of premium rate or overtime rate. This means the total gross pay of Jim should be 5*8*5 + 6*5 equal to C. $230