Answered: a. For each employee, compute the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows:

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
	Examples:	Monthly rate $1,827 Weekly rate ($1,827 × 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 × 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

Example 2-9

John Dilcher is paid an hourly rate of $18.50 per hour, and he worked 49 hours this week. His gross pay is:

40 hours × $18.50	=	$740.00	regular earnings
9 hours × $27.75 ($18.50 × 1.5)	=	249.75	overtime earnings
Total gross pay	=	$989.75

The wages and hours information for five employees of McNeese Enterprises for the week ended July 7 is given below. Employees work a standard 40-hour workweek and are paid time and one-half for all hours over 40 in each workweek.

If required, round your answers to two decimal places and use the rounded answers in subsequent computations. Round your final answers to the nearest cent.

a. For each employee, compute the regular earnings, overtime rate, overtime earnings, and total gross earnings.

b. Compute the total gross earnings for all employees.

Employee	Hours Worked	Regular Hourly Wage Rate	Regular Earnings	Overtime Rate	Overtime Earnings	Total Gross Earnings
Carman, T.	47	$12.45	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Galasso, A.	42	11.90	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Jones, B.	48	10.85	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Rodna, G.	44	11.25	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Wilmon, W.	45½	13.40	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
					(b) Total gross earnings	$fill in the blank 21

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