Robin Market works for Cycle Industries. Her pay rate is $14.50 per hour and she receives overtime pay at one and one-half times her regular hourly rate for any hours worked beyond 40 in a week. During the pay period that ended December 31, 20X1, Robin worked 42 hours. She is married and claims three withholding allowances on her W-4 form. Robin’s cumulative earnings prior to this pay period total $32,000. This week’s wages are subject to the following deductions:
1. Social Security tax at 6.2 percent
2. Medicare tax at 1.45 percent
3. Federal income tax (use the withholding table shown in Figure 10.2B)
4. Health and disability insurance premiums, $180
5. Charitable contribution, $25

INSTRUCTIONS
1. Compute Robin’s regular, overtime, gross, and net pay.
2. Assuming the weekly payroll has been recorded, journalize the payment of her wages for the week ended December 31. Use 54 as the page number for the general journal.

Analyze: 

Based on Robin’s cumulative earnings through December 31, how much overtime pay did she earn this year?