Question

Carson Morris worked two separate jobs for Horwath Company during the week. Job A consisted of 36 hours at $16.00 per hour; Job B entailed 14 hours at $17.50 per hour.

Determine his gross pay for that week if the employer uses the average rate basis for the overtime pay

Answer 1

$903.10

Step-by-step explanation:

Carson's average rate basis for the week is given by the weighted average of each rate by the number of hours worked:

`R = (16.00*36+17.50*14)/(36+14)\\R=\$16.42`

When considering overtime pay, every hour worked over 40 weekly hours must be paid at a rate of 1.5 the normal rate. Since he worked 50 total hours, he should get 10 hours of overtime. His gross pay for that week is:

`P=40*16.42+(1.5*10*16.42)\\P=\$903.10`

Carson's gross pay for that week is $903.10.