PSc 2-8 Calculate Gross Pay with Bonuses Calculate gross pay for each of the fol
ID: 2607592 • Letter: P
Question
PSc 2-8 Calculate Gross Pay with Bonuses Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1: Manny Johnson earns $9.25/hour. During the most recent week, he receives a discretionary bonus of $1,500 and works 44 hours. Gross Pay: $ 1925.50
2: Belinda Marshall earns $15/hour. During the most recent week, she receives a nondiscretionary bonus of $3,500 and works 48 hours. Gross Pay: $
3: Jaden Brown earns $9.50/hour. During the most recent week, he receives a nondiscretionary bonus of $1,000 and works 49 hours. Gross Pay: $
4: Barry Barnes earns $11.25/hour. During the most recent week, he receives a nondiscretionary bonus of $4,200 and works 44 hours. Gross Pay: $
Explanation / Answer
Solution 1:
Regular rate of manny johnson = $9.25 hours
Overtime rate = 9.25*1.5 = $13.875
Let overtime hours is X
Therefore Gross pay:
[(44-x) * 9.25] + (x*13.875) + 1500 = $1925.50
407 - 9.25X + 13.875X + 1500 = $1925.50
4.625 X =18.5, X = 4 hours
Overtime hours is 4 and regular hours = 44 -4 =40 hours per week
Solution 2:
Belinda hourly wage rate = $15/hour
Total hours worked = 48 hours
Belinda regular pay = Hourly pay + Non discretionary bonus = (48*15) + $3,500 = $4,220
Belinda regular rate = $4,220 / 48 = $87.92
Belinda overtime rate = $87.92*1.5 = $131.88
Belinda Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*87.92) + (8*131.88) = $4,571.84
Solution 3:
Jaden hourly wage rate = $9.50/hour
Total hours worked = 49 hours
Jaden regular pay = Hourly pay + Non discretionary bonus = (49*9.50) + $1,000 = $1,465.50
Jaden regular rate = $1,465.50 / 49 = $29.91
Jaden overtime rate = $29.91*1.5 = $44.86
Jaden Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*29.91) + (9*44.86) = $1,600.14
Solution 4:
Barry hourly wage rate = $11.25/hour
Total hours worked = 44 hours
Barry regular pay = Hourly pay + Non discretionary bonus = (44*11.25) + $4,200 = $4,695
Barry regular rate = $4,695 / 44 = $106.70
Barry overtime rate = $106.70*1.5 = $160.05
Barry Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*106.70) + (4*160.05) = $4,908.02
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