Payroll accounting, has to do with "piece-rate employee overtime":The problem is attached. My question is how is "gross earnings" of $1021.01 derived? **Example: Piece-Rate Employee Overtime Calculation**Edmund earns $75 per finished sculpture as a snowy day piece-rate employee at Terrac Sculptures in New Mexico. He completed 12 sculptures during the week of February 27, a payday.He worked 48.75 hours, which includes regular time of 45 hours and overtime of 3.75 hours. His earnings will be calculated as follows:1. Regular Earnings: 12 sculptures x $75 = $9002. Number of Hours: - Regular Hours: 40 - Overtime Hours: 53. Hourly Rate: - Regular Rate: $900 / 45 hours = $20 per hour - Overtime Rate: $30 per hour (1.5 x $20)4. Overtime Earnings: 3.75 hours x $30 = $112.50Total Earnings (Regular + Overtime) = $900 + $112.50 = $1,012.50**Summary Chart**| Wages | Total | Regular | Overtime | # of Sculptures | # of Hours | Rate ||-------|-------|---------|----------|----------------|------------|------|| Earnings | $1,012.50 | $900 | $112.50 | 12 | 48.75 | |**Key Points Highlighted:**- Piece-rate basis employees are paid based on the number of items produced.- Overtime is calculated at 1.5 times the regular hourly rate.- Regular hours and overtime hours worked during the pay period are considered.- For overtime calculation, the effective hourly rate is used.This serves as an example of how to compute pay for a piece-rate employee, taking into consideration the production and overtime hours worked.

Answered: how is "gross earnings" of $1021.01…

Business

Accounting

how is "gross earnings" of $1021.01 derived?

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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