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

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$).$

If the third decimal place is $5$ or more, round to the next higher cent.

If the third decimal place is less than $5,$ simply drop the third decimal place.

Examples: Monthly rate $$1,827$

Weekly rate $\frac{\text{\$}1,82712}{52}=$$$421\mathrm{.}615$ rounded $to$ $$421\mathrm{.}62$

Hourly rate $$\frac{421\mathrm{.}62}{40}=$$$10\mathrm{.}540$ rounded $to$ $$10\mathrm{.}54$

$O.T.$ rate $$10\mathrm{.}541\mathrm{.}5=$$$15\mathrm{.}81$

Also, use the minimum hourly wage of $$7\mathrm{.}25$ in solving these problems and all that follow.

Example $2-9$

John Escobar is paid an hourly rate of $$18\mathrm{.}50$ per hour, and he worked $49$ hours this week. His gross pay is:

$40$ hours $$$$18\mathrm{.}50=$$$740\mathrm{.}00$ regular earnings

$9$ hours $$$$27\mathrm{.}75($$$18\mathrm{.}501\mathrm{.}5)=249\mathrm{.}75$ overtime earnings

Total gross pay $=$

Round the overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent.

a$.$ Porter's overtime earnings for the week are

$ $$

b$.$ Porter's total earnings for the week are

$ $$

Feedback

T Check My Work

a$.$ Calculate overtime hours and multiply by overtime rate.

b$.$ Add regular earnings and overtime earnings.