Alex worked 52 hours during the week. His normal working week consists of 40 hours, of which 36 hours were spent on production while the remaining 4 hours were idle time. Overtime is paid at time and a half. However, it is the policy of the company to pay staff 200% of the normal wage rate after the first three hours of overtime on any working day. Alex worked 6 hours of overtime on a job for which the customer required the work to be completed on the same day. Alex’s normal wage rate is $12 per hour. The rest of the week Alex did not work more than three hours of overtime on any one day. How much of Alex’s gross pay would be charged as direct labour? Select one: a. $714 b. $576 c.

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 12PA: Kyle Forman worked 47 hours during the week for Erickson Company at two different jobs. His pay rate...
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Alex worked 52 hours during the week. His normal working week consists of 40 hours, of which 36 hours were spent on production while the remaining 4 hours were idle time.

Overtime is paid at time and a half. However, it is the policy of the company to pay staff 200% of the normal wage rate after the first three hours of overtime on any working day.

Alex worked 6 hours of overtime on a job for which the customer required the work to be completed on the same day. Alex’s normal wage rate is $12 per hour. The rest of the week Alex did not work more than three hours of overtime on any one day.

How much of Alex’s gross pay would be charged as direct labour?

 

 

Select one:

a.

$714

b.

$576

c.

None of the above

d.

$624

e.

$696

Hi there, can you help me about the calculation?The correct answer should be $576

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