An employee works 45 hours in a week at a regular rate of $28 per hour. Calculate the gross pay including overtime at time-and-a-half for hours over 40.
Correct Answer
D) $1,190.00
Regular pay: 40 hours × $28 = $1,120. Overtime pay: 5 hours × $42 ($28 × 1.5) = $210. Total gross pay = $1,120 + $210 = $1,330. Wait, let me recalculate: 40 × $28 = $1,120, 5 × $42 = $210, total = $1,330. The answer should be b.
Why This Is the Correct Answer
The correct answer is B) $1,330.00. The calculation involves computing regular pay for 40 hours at $28/hour ($1,120) plus overtime pay for 5 hours at time-and-a-half rate ($28 × 1.5 = $42/hour, so 5 × $42 = $210). The total gross pay is $1,120 + $210 = $1,330. The explanation correctly identifies this but incorrectly states C as the answer.
Why the Other Options Are Wrong
Option A: $1,400.00
This amount ($1,190) is significantly lower than the correct calculation and likely results from an error in either the regular pay calculation or overtime rate computation
Option C: $1,330.00
This amount ($1,400) is too high and may result from applying the overtime rate to all 45 hours instead of just the 5 overtime hours
Memory Technique
Remember '40-1.5': After 40 hours, multiply regular rate by 1.5 for overtime. Think 'Forty-One-and-a-Half' as your overtime trigger phrase
Reference Hint
Labor law section or payroll calculations chapter - look for Fair Labor Standards Act (FLSA) overtime requirements
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?