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

1.	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 over-time rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
	Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

Olney Company is a small manufacturing firm located in Allentown, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

Wages are paid every Friday, with one weeks pay being held back by the company. Assume that the first payday for Olney Company is January 14 for the workweek ending January 8 (Saturday).

The information below will be used in preparing the payroll for the pay period ending January 8.

Time Card No. Employee Name Hourly Wage or Salary 11 Rob A. Mangino $18.50 per hour 12 Inga C. Flores 19.25 per hour 13 Carson S. Palmetto 17.80 per hour 21 Randy F. Waters 20.70 per hour 22 Cathy T. Kroll 23.80 per hour 31 Carmen V. Ruppert 800 per week 32 William M. Scott 780 per week 33 Sarah A. Wickman 3,500 per month 51 Lucas T. Foley 4,500 per month 99 Marshal W. Olney 78,000 per year

Ms. Carmen V. Ruppert prepares the time clerks report for each pay period. Her report for the first week of operations is given below.

TIME CLERK'S REPORT NO. 1 For Period Ending January 8, 20--
	Employee	Time Record	Time Worked*	Time Lost
M	T	W	T	F	S
11	ROB A. MANGINO	8	8	8	8	8		40	1 hrs. tardy
12	INGA C. FLORES	8	8	8	8	10	8	50
13	CARSON S. PALMETTO	8	5	8	8	9		38
21	RANDY F. WATERS	10	10	8	8	11		47
22	CATHY T. KROLL	8	8	8	8	8		40
31	CARMEN V. RUPPERT	8	8	8	8	8	1	41
32	WILLIAM M. SCOTT	8	8	8	8	8		40
33	SARAH A. WICKMAN	8	8	8	8	8		40
51	LUCAS T. FOLEY	8	8	8	8	9	4	45
99	MARSHAL W. OLNEY	8	8	8	8	8		40

*All employees, except for Marshal Olney, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

Using the payroll register for Olney Company, answer the following:

1. Record the regular hours and the overtime hours worked for each employee, using the time clerks report as your reference.
2. Complete the Regular Earnings columns (Rate per Hour and Amount) and the Overtime Earnings columns (Rate per Hour and Amount) for each hourly employee. For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.
3. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

If an amount box does not require an entry, leave it blank or enter "0". If required, round your intermediate calculations and final answers to the nearest cent and use the rounded amounts in subsequent computations. Round fraction values to the nearest two decimal places, e.g. 1 1/2 to 1.50.

OLNEY COMPANY, INC. Payroll Register For Period Ending January 8, 20-- Regular Earnings Overtime Earnings Time Card No. Name Marital Status No.W/H Allow. Hours Worked Rate per Hour Amount Hours Worked Rate per Hour Amount Total Earnings 11 Mangino, R. S 1 $ $ $ $ $ 12 Flores, I. S 0 13 Palmetto, C. M 2 21 Waters, R. M 3 22 Kroll, C. S 2 31 Ruppert, C. M 3 32 Scott, W. M 4 33 Wickman, S. S 1 51 Foley, L. M 5 99 Olney, M M 7 Totals