A nonexempt Orlando employee has 40 straight-time hours recorded plus 7 additional overtime hours at $32 per hour. What gross pay should be calculated?
Correct Answer
B) $1,616.00
Nonexempt overtime is paid at one and one-half times the regular rate for overtime hours.
Why This Is the Correct Answer
Nonexempt overtime is paid at one and one-half times the regular rate for overtime hours.
Why the Other Options Are Wrong
Option A: $1,504.00
$1,504.00 is below the supported result for overtime gross pay; it likely skips a premium-pay or employer-cost component.
Option C: $1,280.00
$1,280.00 is below the supported result for overtime gross pay; it likely skips a premium-pay or employer-cost component.
Option D: $1,872.00
$1,872.00 is above the supported result for overtime gross pay; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Overtime Gross Pay ladder for Payroll Clerk: hours climb before dollars add up.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001; U.S. Department of Labor FLSA guidance to Builder's Guide to Accounting, Payroll records and overtime cost; DOL FLSA overtime guidance; verify the HR, payroll, workers compensation, or OSHA record before answering.
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