An employee receives an hourly rate of $21, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 47; federal income tax withheld, $323; cumulative earnings for year prior to current week, $96,962; social security tax rate, 6.0% on maximum of $110,817; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee? Select the correct answer.

a. $987

b. $1,481

c. $1,061

d. $1,974