An employee receives an hourly rate of $25, 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, 42; federal income tax withheld, $364; cumulative earnings for year prior to current week, $97,555; social security tax rate, 6.0% on maximum of $103,743; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee?

Select the correct answer.

a.$1,075 b.$1,575 c.$1,050 d.$2,100