Bob Knox is paid on a piece-rate basis. He is paid 30 cents for each unit he produces. For overtime work, he receives in addition to his piece-rate eamings a sum equal to one-half the regular hourly pay multiplied by the hours worked in excess of 40 in a week. During a particular week, Knox worked 45 hours and produced 1,890 units. His total earnings for the week are Carson Morris worked two separate jobs for Horwath Company during the week. Job A consisted of 36 hours at $16.00 per hour, Job B entailed 14 hours at $17.50 per hour Determine his gross pay for that week if the employer uses the average rate basis for the overtime pay.

Bob Knox will be paid $598.5 for 45 hours worked.

Carson Morris will be paid gross pay $903.1 for 50 hours worked.

Explanation:

Bob Knox is paid on piece-rate basis, which means he will be paid based on the units he produced. To calculate his pay

1,890 units × $0.3 = $567

$567 ÷ 45 hours worked = $12.6 per hour

To calculate his overtime pay we multiply by 0.5 because he is paid one half of regular pay as overtime.

$12.6 per hour × 0.5 = $6.3 per hour

$6.3 per hour × 5 hours overtime = $31.5

$31.5 + $567 = $598.5.

Carson Morris is paid average rate basis for overtime. His pay will be calculated as follows,

( 36 hours × $16.00 per hour) + (14 hours × $17.50 per hour ) = $821 for (36 + 14) 50 hours.

$821 ÷ 50 hours = $16.42 per hour

$16.42 × 0.5 = $8.21 per hour

$8.21 per hour × 10 hours overtime = $82.10

=$82.1 + $821 = $903.1

explanation:

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