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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 2-11

Steve Timko worked at two different pay rates during the past week. His main job paid $17.30/hour, while the extra job rate was $20.50. He worked the first 36 hours at Job "A" and 8 hours at Job "B."

Method (1)
	Regular earnings		$622.80 (36 $17.30)
	Job B		$164.00 (8 $20.50)
	Overtime rate (higher rate)		$10.25 (0.5 $20.50)
	Overtime pay		$41.00 (4 $10.25)
	Total pay		$827.80 ($622.80 + $164.00 + $41.00)
Method (2)
	Job A		$622.80 (36 $17.30)
	Job B		$164.00 (8 $20.50)
	Overtime rate (1/2)		$8.94 ($786.80 44 0.5)
	Extra overtime pay		$35.76 (4 $8.94)
	Total pay		$822.56 ($622.80 + $164.00 + $35.76)
Method (3)
	Job A		$622.80 (36 $17.30)
	Job B		$164.00 (8 $20.50)
	Overtime pay (Job B)		$41.00 (4 $10.25)
	Total pay		$827.80 ($622.80 + $164.00 + $41.00)

Kyle Forman worked 43 hours during the week for Erickson Company at two different jobs. His pay rate was $13.05 for the first 40 hours, and his pay rate was $10.10 for the other 3 hours.

Round your overtime rate and other interim computations to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent.

Determine his gross pay for that week if the company uses the one-half average rate method.

a. Gross pay $___________

b. If prior agreement existed that overtime would be paid at the rate for the job performed after the 40^th hour, the gross pay would be $___________

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