Potts, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page.
Sue Ellen Boggs is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest ¼ of an hour for workers who are more than 10 minutes late in ringing in.
Refer to the time card and compute:
- a. The daily total hours .......................................................................... ___________
- b. The total hours for the week ............................................................... ___________
- c. The regular weekly earnings ................................................................ $___________
- d. The overtime earnings (company rounds O.T. rate to 3 decimal places) ___________
- e. The total weekly earnings ..................................................................... $__________
a.
Calculate the daily total hours for Employee S.
Explanation of Solution
Calculate the daily total hours for Employee S.
Tuesday | ||
Session | Time | Hours worked |
Morning | 755 to 1200 (see Note 1) | 4hours |
Afternoon | 1230 to 1630 | 4 hours |
Evening | 1801 to 2002 | 2hours, 1 minute |
Total hours worked | 10 hours, 1 minute (rounded to 10 hours) |
Table (1)
Note 1: In the morning session, Employee S worked from 755 to 1200. The 5 minutes he worked before 800 are forbidden time, and will not be considered as working hour.
Wednesday | ||
Session | Time | Hours worked |
Morning | 750 to 1202 (see Note 1) | 4hours |
Afternoon | 1231 to 1631 (Note 2) | 3hours, 59 minutes |
Evening | 1809 to 2001 | 1hour, 52 minutes |
Total hours worked | 9 hours, 53 minutes (rounded to 10 hours) |
Table (2)
Note 1: In the morning session, Employee S worked from 750 to 1202. He worked for 10 minutes before 800, and 2 minutes after 1200. The time before 800 and the time after 1200 are forbidden time, and will not be considered as working hour.
Note 2: In the afternoon session, he worked from 1231 to 1631. He worked for 1 minute after 1630 which is forbidden time, and will not be considered as working hour.
Thursday | ||
Session | Time | Hours worked |
Morning | 813 to 1200 (see Note 1) | 3 hours, 32 minutes |
Afternoon | 1230 to 1630 | 4 hours |
Evening | 1802 to 2005 | 2 hours, 3 minutes |
Total hours worked | 9 hours 35 minutes (rounded to 9.45 hours) |
Table (3)
Note 1: In the morning session, Employee S worked from 813 to 1200. That means, he came 13 minutes late. So, as per the provisions, the company will deduct
Friday | ||
Session | Time | Hours worked |
Morning | 759 to 1203 (see Note 1) | 3 hours, 59 minutes |
Afternoon | 1238 to 1635 (see Note 2) | 3 hours, 52 minutes |
Evening | 1800 to 2000 | 2 hours |
Total hours worked | 9 hours, 51 minutes (rounded to 10 hours) |
Table (4)
Note 1: In the morning session, Employee S worked from 759 to 1203. He worked for 1 minute before 800 and 3 minutes after 1200. The time before 800 and the time after 1200 are forbidden time, and will not be considered as working hour.
Note 2: In the afternoon session, he worked from 1238 to 1635. He worked for 5 minutes after 1630. The time after 1630 is considered as forbidden time, and will not be considered as working hour.
Saturday | ||
Session | Time | Hours worked |
Morning | 800 to 1201 (see Note 1) | 4 hours |
Afternoon | ||
Evening | ||
Total hours worked | 4 hours |
Table (5)
Note 1: In the morning session, Employee S worked from 800 to 1201. He worked for 1 minute after 1200 which is forbidden time, and will not be considered as working hour.
b.
Calculate the total number of hours worked for the week by Employee S.
Explanation of Solution
Calculate the total number of hours worked for the week by Employee S.
Hence, the total number of hours worked for the week by Employee S is 43 hours 45 minutes.
c.
Calculate the regular weekly earnings for Employee S.
Explanation of Solution
Regular earnings: Generally, employees in a firm work in pre-determined hours (40 hours) and get paid accordingly. The amount of earnings that is calculated based predetermined hours is called as regular earnings of an employee.
Calculate the regular weekly earnings for Employee S.
Hence, the regular weekly earnings for Employee S is $418.
d.
Calculate the overtime earnings for Employee S.
Explanation of Solution
Overtime Earnings: If an employee works more than the stipulated working hours (more than 40 hours) of the employment then, the employee is mandated to get paid one and a half times more than the normal working pay. This one and half times can be termed as overtime premium or earnings.
Calculate the overtime earnings for Employee S.
Step 1: Calculate the number of overtime hours worked.
Step 2: Calculate the overtime earnings:
Hence, the overtime earnings for Employee S is $58.78.
e.
Calculate the total weekly earnings for Employee S.
Explanation of Solution
Total Earnings: It is the amount of employee’s gross earnings during a period. It includes regular earnings plus overtime earnings or any bonus or commission if applicable.
Calculate the total weekly earnings for Employee S.
Hence, the total weekly earnings for Employee S is $476.78.
Want to see more full solutions like this?
Chapter 2 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
- Costa, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page. Barbara Bansta is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest of an hour for workers who are more than 10 minutes late in ringing in. Refer to the time card and compute: a. The daily total hours ..........................................................................___________ b. The total hours for the week ...............................................................___________ c. The regular weekly earnings ................................................................___________ d. The overtime earnings (company rounds O.T. rate to 3 decimal places)___________ e. The total weekly earnings .....................................................................__________arrow_forwardWinter submitted a pay card reflecting the following hours worked at Kicy, Incorporated. Winter earns $14.15 per hour. The company pays overtime only on hours worked exceeding 40 per week. The company is considering changing from quarter-hour to hundredth- hour time collection. Under the current quarter-hour system, each time the employee clocks in or out, the time is rounded to the nearest quarter-hour. Required: 1. Calculate Winter's time for both the quarter-hour and hundredth-hour systems. 2. Calculate Winter's total pay in the hundredth-hour and quarter-hour systems. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Winter's time for both the quarter-hour and hundredth-hour systems. Note: Round your intermediate calculations and final answers to 2 decimal places. In 7:30 9:25 7:10 6:02 Out 11:20 12:28 11:43 11:05 In 12:17 1:40 12:26 12:06 Out 5:18 6:12 5:35 6:04 Total Hours with Total Hours with Hundredth-hour Quarter-hourarrow_forwardWinter submitted a pay card reflecting the following hours worked at Kicy, Incorporated. Winter earns $15.95 per hour. The company pays overtime only on hours worked exceeding 40 per week. The company is considering changing from quarter-hour to hundredth-hour time collection. Under the current quarter-hour system, each time the employee clocks in or out, the time is rounded to the nearest quarter-hour. Required: 1. Calculate Winter's time for both the quarter-hour and hundredth-hour systems. 2. Calculate Winter's total pay in the hundredth-hour and quarter-hour systems. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Winter's time for both the quarter-hour and hundredth-hour systems. Note: Round your intermediate calculations and final answers to 2 decimal places. In 7:00 9:29 7:15 10:02 Out 11:16 12:28 11:43 11:00 In 12:15 1:43 12:30 12:06 Out 5:20 6:10 5:33 3:00 Total Hours with Total Hours with Quarter-hour Hundredth-hourarrow_forward
- Marcell Teague submitted a pay card reflecting the following hours worked at Kicy Inc. He earns $15.65 per hour. The company pays overtime only on hours worked exceeding 40 per week. The company is considering changing from quarter-hour to hundredth-hour time collection. Under the current quarter-hour system, each time the employee clocks in or out, the time is rounded to the nearest quarter-hour. Required: Calculate Marcell’s time for both the quarter-hour and hundredth-hour systems. Calculate Marcell’s total pay in the hundredth-hour and quarter-hour systems. Calculate Marcell’s time for both the quarter-hour and hundredth-hour systems. (Round your intermediate calculations and final answers to 2 decimal places.) In Out In Out Total Hours with Hundredth-hour Total Hours with Quarter-hour 9:30 11:18 12:20 3:18 7:27 12:30 1:41 4:09 9:13 11:39 12:29 3:31 6:00 11:02 12:02 6:03 Calculate Marcell’s total pay in the hundredth-hour and…arrow_forwardSheila Williams, a medical secretary, earns $3,575 monthly for a 35-hour week. For overtime work, she receives extra pay at the regular hourly rate up to 40 hours and time and one-half beyond 40 hours in any week. During one semimonthly pay period, Williams worked 10 hours overtime. Only 2 hours of this overtime were beyond 40 hours in any one week. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The regular semimonthly earnings $ b. The overtime earnings $ c. The total earningsarrow_forwardGail Richter worked the following schedule: Monday, 7 hours 42 minutes, Tuesday, 8 hours 23 minutes, Wednesday, 9 hours 28 minutes, Thursday, 8 hours 12 minutes, Friday, 8 hours 6 minutes. The employer pays overtime in accordance with FLSA regulations Required: Determine Gail's total time worked according to the (a) quarter-hour method and (b) the hundredth-hour method. Which is the more favorable method for Gail, quarter-hour or hundredth-hour? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Gail Richter Quarter-Hour Timo 49.50 hours Hundredth Hour Time hours More Favorable Method Quarter-hourarrow_forward
- Carrie Overwood works fluctuating work schedules. Besides her fixed salary of $1,044 per week, her employment agreement provides for overtime pay at an extra half-rate for hours worked over 40. This week she worked 48 hours. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The overtime earnings: $87.04 b: the total earnings: $1,131.04 c. If this was a BELO plan with a pay rate of $23.45 per hour and a maximum of 48 hours, how much would Overwood be paid for 42 hours? $ 1,008.35 23.45x42=984.90 0.5x2x23.45= 23.45 984.90+23.45 =1,008.35 Note: I already figured out A &B. I just need help with letter C. I got 1,008.35 for letter C but it marks it wrong am I doing anything wrong.arrow_forwardColleen Prescott is a salaried employee who works fluctuating work schedules. She is paid a fixed salary of $920 each week, with an agreement with her employer that overtime (over 40 hours) will be paid at an extra half-rate, based on the actual hours worked. This week she worked 42 hours. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a) the overtime earnings? b) the total earnings? c) If this was a BELO plan with a pay rate of $21 per hour and a maximum of 45 hours, how much would Prescott be paid for 42 hours?arrow_forwardDave’s Scooters is a small manufacturer of specialty scooters. The company employs 14 production workers and four administrative persons. The following procedures are used to process the company’s weekly payroll:a. Whenever an employee receives a pay raise, the supervisor must fill out a wage adjustment form, which is signed by the company president. This form is used to change the employee’s wage rate in the payroll system.b. All employees are required to record their hours worked by clocking in and out on a time clock. Employees must clock out for lunch break. Due to congestion around the time clock area at lunch time, management has not objected to having one employee clock in and out for an entire department.c. Whenever a salaried employee is terminated, Personnel authorizes Payroll to remove the employee from the payroll system. However, this procedure is not required when an hourly worker is fired. Hourly employees only receive a paycheck if their time cards show hours worked.…arrow_forward
- Stephanie Parker is a salaried, nonexempt administrator for Forise Industries and is paid biweekly. Her annual salary is $39,000, and her standard workweek is 45 hours. During the pay period ending February 3, 20XX, she worked 8 hours overtime. She is single with two withholding allowances. Required: Complete the following payroll register for Stephanie's pay. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Company Name Stephanie Parker Forise Industries M/S # of W/H Annual Salary Hourly Rate Overtime Rate No. of Regular Hours Period Ended: No. of Overtime Regular Hours Earnings 2/3/20XX Overtime Earnings Gross Earningsarrow_forwardSheila Williams, a medical secretary, earns $2,617 monthly for a 34-hour week. For overtime work, she receives extra pay at t regular hourly rate up to 40 hours and time and one-half beyond 40 hours in any week. During one semimonthly pay period, w worked 10 hours overtime. Only 2 hours of this overtime were beyond 40 hours in any one week. Compute the following amour Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your f answers to the nearest cent. a. The regular semimonthly earnings b. The overtime earnings c. The total earnings 1,308.50 ✔ 174.05 X Incorrectarrow_forwardBrian Packer worked the following schedule: Monday, 9 hours; Tuesday, 7 hours 34 minutes; Wednesday, 8 hours 23 minutes; Thursday, 8 hours 16 minutes; Friday, 8 hours. The employer pays overtime for all time worked in excess of 40 hours per week. Required: Determine Brian's total time worked according to the (a) quarter-hour method and (b) the hundredth-hour method. Which is the more favorable method for Brian, quarter-hour or hundredth-hour? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Brian Packer Quarter-Hour Time hours Hundredth-Hour Time More Favorable Method hoursarrow_forward
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning