Damien Carranza is a nonexempt employee of Verdant Enterprises where he is a salesperson, earning a base annual salary of $31,750 plus a 3 percent commission on all sales during the pay period. During the weekly pay period ending August 25, Damien closed $26,400 in sales and worked 4 hours overtime. Required:
What is his gross pay for the period? (Do not round your intermediate calculations. Round your final answers to 2 decimal places.)
Gross pay

Damien Carranza

Gross pay = $1.494.17

Explanation:

a) Data and Calculations:

Base annual salary = $31,750

Weekly base hours = 40 hours

We assume that there are 52 weeks in a calendar year.

Hourly rate = $31,750/(52 weeks * 40 hours) = $15.26442 per hour

Overtime worked = 4 hours

Overtime rate = 4 * $31,750/2,080 * 1.5 = $91.59

Weekly base pay = 40 * $31,750/2,080 = 610.58

Commission = $26,400 * 3% =                 792.00

Gross pay =                                            $1,494.17

b) Since Damien is a non-exempt employee, he is entitled to earn the federal minimum wage and qualify for overtime pay.  This is calculated as one-and-a-half times his hourly rate, for every hour worked above and beyond the standard 40-hour workweek.  The gross pay is Damien's total earnings throughout the week before deductions for mandated taxes, health insurance, retirement, and Medicare contributions are made.

a ab