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 overtime 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.

Example 6-1

Chris Collins (the first employee in Figure 6.1) earns $15.20 per hour and worked 44 hours. His pay would be (using the overtime premium approach):

Regular pay	$15.20 44 hours =	$668.80
Overtime premium pay	$ 7.60 4 hours =	30.40
Total pay		$699.20

John Torre is the only employee of Bambert Company. His pay rate is $19.70 per hour with an overtime rate of 1 times for hours over 40 in a workweek.

For the week ending March 31, 20--, he worked 44 hours. Calculate his gross pay for the week using the overtime premium approach to calculate the overtime pay.

Round your answers to the nearest cent.

a. Regular pay
b. Overtime premium pay
c. Gross pay

d. Since the company holds back one week of pay, Torre will not be paid until April 7, 20--. What adjusting entry would the company make in order to record Torre's salary in the first quarter of this year?

If an amount box does not require an entry, leave it blank.

Account	Debit	Credit