Chapter 2, Problem 9PA

a.

To determine

Calculate number of hours worked each day for K.

Explanation of Solution

Calculate number of hours worked each day for K.

Monday
Session	Time	Hours worked
Morning	7:50 to 12:00	4 hours 10 minutes
Afternoon	12:50 to 5:01	4 hours 11 minutes
Total hours worked		8 hours 21 minutes (rounded to 8 hours 30 minutes)

Table (1)

Note: According to fraction hour, 21 minutes will come under the second quarter. Hence, it will be considered as 30 minutes.

Tuesday
Session	Time	Hours worked
Morning	7:56 to 12:01	4 hours 5 minutes
Afternoon	12:49 to 5:02	4 hours 13 minutes
Overtime	5:30 to 7:31	2 hours 1 minute
Total hours worked		10 hours 19 minutes (rounded to 10 hours 30 minutes)

Table (2)

Note: According to fraction hour, 19 minutes will come under the second quarter. Hence, it will be considered as 30 minutes.

Wednesday
Session	Time	Hours worked
Morning	7:59 to 12:02	4 hours 3 minutes
Afternoon	12:58 to 5:03	4 hours 5 minutes
Total hours worked		8 hours 8 minutes (rounded to 8 hours 15 minutes)

Table (3)

Note: According to fraction hour, 8 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.

Thursday
Session	Time	Hours worked
Morning	7:45 to 12:00	4 hours 15 minutes
Afternoon	12:55 to 5:00	4 hours 5 minutes
Overtime	5:29 to 8:02	2 hours 33 minutes
Total hours worked		10 hours 53 minutes (rounded to 11 hours )

Table (4)

Note: According to fraction hour, 53 minutes will come under the fourth quarter. Hence, it will be considered as 60 minutes.

Friday
Session	Time	Hours worked
Morning	8:01 to 12:01	4 hours
Afternoon	1:00 to 5:01	4 hours 1 minute
Overtime	6:00 to 7:30	1 hour 30 minutes
Total hours worked		9 hours 31 minutes (rounded to 9 hours 45 minutes )

Table (5)

Note: According to fraction hour, 31 minutes will come under the third quarter. Hence, it will be considered as 45 minutes.

Saturday
Session	Time	Hours worked
Morning	7:48 to 12:02	4 hours 14 minutes
Afternoon	-
Total hours worked		4 hours 14 minutes (rounded to 4 hours 15 minutes)

Table (6)

Note: According to fraction hour, 14 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.

Sunday
Session	Time	Hours worked
Morning	-
Afternoon	2:00 to 6:03	4 hours 3 minutes
Total hours worked		4 hours 3 minutes (rounded to 4 hours 15 minutes)

Table (7)

Note: According to fraction hour, 3 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.

Note: Saturday and Sunday is not a normal working day. So, the working hours of an employee on Saturday and Sunday is considered as overtime.

b.

To determine

Calculate the total number of hours worked by K.

Explanation of Solution

Calculate the total number of hours worked by K.

$\begin{array}{c}\text{Total hours worked }=\text{Sum of total number of hours worked from Monday to Sunday}\\ =\left(8\frac{1}{2}+10\frac{1}{2}+8\frac{1}{4}+11+9\frac{1}{3}+4\frac{1}{4}+4\frac{1}{4}\right)\text{hours}\\ =56\frac{1}{2}\text{hours}\end{array}$

Hence, the total number of hours worked by K is 56 hours 30 minutes.

c.

To determine

Calculate the regular earnings for K.

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 earnings for K.

$\begin{array}{c}\text{Regular earnings = Regular hours worked }\times \text{Hourly wage rate}\\ \text{=40 hours }\times \text{\$13}\text{.50 per hour}\\ =\$540\end{array}$

Hence, the regular earnings for K is $540.

d.

To determine

Calculate the overtime earnings for K.

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 K.

Step 1: Calculate the number of overtime hours worked. and overtime rate for Weekday, Saturday and Sunday.

$\begin{array}{c}\text{Overtime hours =Total hours worked in a week}-\text{Normal hours per week}\\ \text{= 56}\frac{1}{2}-40\\ =16\frac{1}{2}\text{hours}\end{array}$

Note: Out of 16 hours 30 minutes, 12 hours 15 minutes is the overtime of week days and Saturday, and the remaining 4 hours 15 minutes is the overtime on Sunday.

Step 2: Calculate overtime rate for Weekday, Saturday and Sunday.

Calculate overtime rate for weekday and Saturday.

$\begin{array}{c}\text{Overtime rate}\left(\text{Weekday and Saturday}\right)=1\frac{1}{2}\text{times the hourly rate}\\ =1\frac{1}{2}\times \$13.50\\ =\$20.25\end{array}$

Calculate overtime rate for Sunday.

$\begin{array}{c}\text{Overtime rate}\left(\text{Sunday}\right)=2\text{times the hourly rate}\\ =2\times \$13.50\\ =\$27\end{array}$

Step 3: Calculate the overtime earnings:

$\begin{array}{c}\text{Overtime earnings = Overtime hours worked }\times \text{Overtime wage rate}\\ =\left(\$20.25\times 12\frac{1}{4}\right)+\left(\$27\times 4\frac{1}{4}\right)\\ =\$248.06+\$114.75\\ =\$362.81\end{array}$

Hence, the overtime earnings for K is $362.81.

e.

To determine

Calculate the total earnings for K.

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 earnings for K.

$\begin{array}{c}\text{Total Earnings = Regular}\text{earnings}\text{+}\text{}\text{Overtime}\text{earnings}\\ \text{=\$540}\text{.00 +}\text{\$362}\text{.81}\\ \text{=\$902}\text{.81}\end{array}$

Hence, the total earnings for K are $902.81.