Question

Kyle Forman worked 47 hours during the week for Erickson Company at two different jobs. His pay rate was $14.00 for the first 40 hours, and his pay rate was $11.80 for the other 7 hours.
Round your overtime rate and other interim computations to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent.

Determine his gross pay for that week if the company uses the one-half average rate method.

Answer 1

one-half average method means there is bonus which is equivalent to over time * half of average hourly rate.

Let us calculate earnings using normal method first.

We are given that 14$ paid for first 40 hours and $11.8 for next 7 hours.

So, net pay would be 14*40+11.8*7 = $642.6

Now we need to find bonus pay using one-half rate method.

That bonus = over time * half of the average hourly rate

Average hourly rate = income earned/total number of hours

                                  =$\frac{642.6}{47} = 13.67$

Hence bonus = 7*$\frac{13.67}{2}$= $47.85

Gross pay using one-half average method= net pay + bonus

                                                                      =642.6+47.85

                                                                      = 690.45$