Unless instructed otherwise, compute hourly rate 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, drop the third decimal place.

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

Tip: always round hourly and overtime rates to the nearest cent (2 decimal places) before using those rates in subsequent calculations.

1. This week, Carla Maloney, a waitress, received $80 in tips from customers and worked 40 hours. Carla keeps her tips but reports the amount to her employer. Her employer pays her minimum wage and takes the full tip credit.

What gross pay does the business owe Maloney, assuming the business does not violate the FLSA? Show your work and highlight your final answer.

2. Fall is paid a biweekly salary of $937.50. Overtime is paid for hours beyond 40 in each workweek. One week, Fall works 3 hours overtime.

What is Fall's pay for this biweekly pay period? Show your work and highlight your final answer.

3. Moe receives 16 cents for every unit produced. Moe produces 2,976 pieces in a 43-hour workweek. Moe is paid time-and-a-half for overtime hours. The business uses method A to determine overtime pay.

What is Moes total earnings for this workweek? Show your work and highlight your final answer.

4. Sam Tully works two separate jobs for Mountain Company. During the week, Job A consisted of 38 hours at $18 per hour Job B involved 15 hours at $14 per hour.

Your textbook describes a method in which you determine an average rate per hour; option 2 for different rates for different jobs. This is referred to as the average rate method for determining overtime. Please make a note of this because youll have a problem similar to this on the exams in which youll be instructed to use the average rate method.

What is Sams total earnings for this workweek if Mountain Company uses the average rate method for calculating overtime? Show your work and highlight your final answer.

5. James receives an annual $25,700 base salary for working a territory in Washington. James sales quota is $900,000 annually, and he receives an 8% commission on all sales in excess of $900,000. This year, his sales are $965,000.

What is James total earnings for this year? Show your work and highlight your final answer.

6. Mary earns an hourly wage of $13.67. This week she worked 44 hours and earned a production bonus of $37.10. The production bonus is considered usual and expected. A bonus thats usual and expected, and awarded regularly, is referred to as a nondiscretionary bonus. In other words, its not awarded at the managements discretion its a normal part of the pay structure.

What is Marys total earnings for this workweek? Show your work and highlight your final answer.