a.
Calculate number of hours worked each day for K.
a.
Explanation of Solution
Calculate number of hours worked each day for K.
Monday | ||
Session | Time | Hours worked |
Morning | 7:50 to 12:00 | 4 hours 10 minutes |
Afternoon | 12:50 to 5:01 | 4 hours 11 minutes |
Total hours worked | 8 hours 21 minutes (rounded to 8 hours 30 minutes) |
Table (1)
Note: According to fraction hour, 21 minutes will come under the second quarter. Hence, it will be considered as 30 minutes.
Tuesday | ||
Session | Time | Hours worked |
Morning | 7:56 to 12:01 | 4 hours 5 minutes |
Afternoon | 12:49 to 5:02 | 4 hours 13 minutes |
Overtime | 5:30 to 7:31 | 2 hours 1 minute |
Total hours worked | 10 hours 19 minutes (rounded to 10 hours 30 minutes) |
Table (2)
Note: According to fraction hour, 19 minutes will come under the second quarter. Hence, it will be considered as 30 minutes.
Wednesday | ||
Session | Time | Hours worked |
Morning | 7:59 to 12:02 | 4 hours 3 minutes |
Afternoon | 12:58 to 5:03 | 4 hours 5 minutes |
Total hours worked | 8 hours 8 minutes (rounded to 8 hours 15 minutes) |
Table (3)
Note: According to fraction hour, 8 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.
Thursday | ||
Session | Time | Hours worked |
Morning | 7:45 to 12:00 | 4 hours 15 minutes |
Afternoon | 12:55 to 5:00 | 4 hours 5 minutes |
Overtime | 5:29 to 8:02 | 2 hours 33 minutes |
Total hours worked | 10 hours 53 minutes (rounded to 11 hours ) |
Table (4)
Note: According to fraction hour, 53 minutes will come under the fourth quarter. Hence, it will be considered as 60 minutes.
Friday | ||
Session | Time | Hours worked |
Morning | 8:01 to 12:01 | 4 hours |
Afternoon | 1:00 to 5:01 | 4 hours 1 minute |
Overtime | 6:00 to 7:30 | 1 hour 30 minutes |
Total hours worked | 9 hours 31 minutes (rounded to 9 hours 45 minutes ) |
Table (5)
Note: According to fraction hour, 31 minutes will come under the third quarter. Hence, it will be considered as 45 minutes.
Saturday | ||
Session | Time | Hours worked |
Morning | 7:48 to 12:02 | 4 hours 14 minutes |
Afternoon | - | |
Total hours worked | 4 hours 14 minutes (rounded to 4 hours 15 minutes) |
Table (6)
Note: According to fraction hour, 14 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.
Sunday | ||
Session | Time | Hours worked |
Morning | - | |
Afternoon | 2:00 to 6:03 | 4 hours 3 minutes |
Total hours worked | 4 hours 3 minutes (rounded to 4 hours 15 minutes) |
Table (7)
Note: According to fraction hour, 3 minutes will come under the first quarter. Hence, it will be considered as 15 minutes.
Note: Saturday and Sunday is not a normal working day. So, the working hours of an employee on Saturday and Sunday is considered as overtime.
b.
Calculate the total number of hours worked by K.
b.
Explanation of Solution
Calculate the total number of hours worked by K.
Hence, the total number of hours worked by K is 56 hours 30 minutes.
c.
Calculate the regular earnings for K.
c.
Explanation of Solution
Regular earnings: Generally, employees in a firm work in pre-determined hours (40 hours) and get paid accordingly. The amount of earnings that is calculated based predetermined hours is called as regular earnings of an employee.
Calculate the regular earnings for K.
Hence, the regular earnings for K is $540.
d.
Calculate the overtime earnings for K.
d.
Explanation of Solution
Overtime Earnings: If an employee works more than the stipulated working hours (more than 40 hours) of the employment then, the employee is mandated to get paid one and a half times more than the normal working pay. This one and half times can be termed as overtime premium or earnings.
Calculate the overtime earnings for K.
Step 1: Calculate the number of overtime hours worked. and overtime rate for Weekday, Saturday and Sunday.
Note: Out of 16 hours 30 minutes, 12 hours 15 minutes is the overtime of week days and Saturday, and the remaining 4 hours 15 minutes is the overtime on Sunday.
Step 2: Calculate overtime rate for Weekday, Saturday and Sunday.
Calculate overtime rate for weekday and Saturday.
Calculate overtime rate for Sunday.
Step 3: Calculate the overtime earnings:
Hence, the overtime earnings for K is $362.81.
e.
Calculate the total earnings for K.
e.
Explanation of Solution
Total Earnings: It is the amount of employee’s gross earnings during a period. It includes regular earnings plus overtime earnings or any bonus or commission if applicable.
Calculate the total earnings for K.
Hence, the total earnings for K are $902.81.
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Chapter 2 Solutions
PAYROLL ACCOUNTING 2019
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