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Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates 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, simply drop the third decimal place.
	Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

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

Example 2-19

Matt Leonard earns $739.20 a week with fluctuating workweek hours. If he worked 48 hours in one week, his gross pay would be calculated as follows:

$739.20 48 hours	=	$15.40 regular rate
$15.40 0.5	=	$7.70 extra half pay rate
8 hours O.T. $7.70	=	$61.60 extra pay
$739.20 + $61.60	=	$800.80 weekly gross pay

Example 2-21

The agreement between John Kalas and his employer provides for a pay rate of $14 per hour with a maximum of 48 hours per week.

48 hours $14	=	$672.00
8 hours 0.5 $14	=	56.00
John's weekly salary	=	$728.00

No matter how many hours John works each week (above and below 40), his gross pay would be $728.00. However, if John works beyond the agreed-upon maximum of 48 hours, he must be paid at one and one-half times his regular rate of pay (1.5 $14 = $21) for the hours over 48.

Carrie Overwood works fluctuating work schedules. Besides her fixed salary of $1,027 per week, her employment agreement provides for overtime pay at an extra half-rate for hours worked over 40. This week she worked 46 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 $25.15 per hour and a maximum of 46 hours, how much would Overwood be paid for 42 hours? $_____________

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