Payroll Accounting Jeanette Landin 5th Edition- Test Bank

Payroll Accounting Jeanette Landin 5th EditionTest Bank To purchase this Test Bank with answers, click the link below https://examquizes.com/product/payroll-accounting-jeanette-landin-5th-edition-test-bank/

Description Payroll Accounting Jeanette Landin 5th Edition- Test Bank Sample Questions Instant Download With Answers Chapter 3 Gross Pay Computation 1) Gross pay is the amount of employee compensation prior to deducting any amounts for taxes or other withholdings.

Answer: TRUE Difficulty: 1 Easy Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

2) Salaried employees may be classified as nonexempt.

Answer: TRUE Difficulty: 2 Medium Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers

Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

3) A firm is always exempt from FLSA provisions if it has fewer than 5 employees.

Answer: FALSE Explanation: FLSA coverage depends on annual sales volume, the presence of interstate commerce, and the type of business, not the number of employees.

Difficulty: 2 Medium Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

4) The tipped minimum wage is $2.13 per hour for all states.

Answer: FALSE Explanation: The tipped minimum wage varies among states.

Difficulty: 1 Easy Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Remember AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5) Federal policy explains clear differences between exempt and nonexempt employees.

Answer: FALSE Explanation: Federal policy contains guidelines for exempt employee classification, but no specific differences are delineated.

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Analyze AACSB: Reflective Thinking Accessibility: Keyboard Navigation

6) To compute the hourly rate for an employee with a 40-hour standard workweek, you would divide the annual salary by 2,080.

Answer: TRUE Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

7) Piece-rate pay is used for employees who participate materially in the sale of manufacturing components.

Answer: FALSE Explanation: Piece-rate pay is used for employees who participate materially in the manufacturing of components.

Difficulty: 3 Hard Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation

8) The hundredth-hour system promotes more accuracy in employee time collection than the quarter-hour system.

Answer: TRUE Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

9) The payroll register is a confidential company document.

Answer: TRUE Difficulty: 1 Easy Topic: Create a Payroll Register Learning Objective: 03-05 Create a Payroll Register Bloom’s: Remember AACSB: Communication Accessibility: Keyboard Navigation

10) To rule the payroll register means that the payroll accountant establishes procedures about the payroll register.

Answer: FALSE Explanation: Ruling the payroll register means that the final totals are double underlined.

Difficulty: 1 Easy Topic: Create a Payroll Register Learning Objective: 03-05 Create a Payroll Register Bloom’s: Understand AACSB: Communication Accessibility: Keyboard Navigation

11) The payroll register should be retained indefinitely, unlike most other payroll documentation.

Answer: FALSE Explanation: The payroll register should be retained for the same amount of time as other payroll documents.

Difficulty: 1 Easy Topic: Create a Payroll Register Learning Objective: 03-05 Create a Payroll Register Bloom’s: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

12) Any employee may request a payroll draw against future earnings.

Answer: FALSE Explanation: Payroll draws are generally reserved for commission-based employees.

Difficulty: 2 Medium Topic: Apply Combination Pay Methods Learning Objective: 03-06 Apply Combination Pay Methods Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

13) Compensatory time is only federally mandated for public salaried exempt employees.

Answer: TRUE Difficulty: 1 Easy

Topic: Explain Special Pay Situations Learning Objective: 03-07 Explain Special Pay Situations Bloom’s: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

14) Nonexempt employees are usually workers who: 1.

2.

3.

4.

A) Routinely supervise other employees.

B) Are exempt from certain company rules.

C) Occupy executive positions in the company.

D) Perform operative level tasks.

Answer: D Difficulty: 1 Easy Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

15) Which of the following automatically exempts an employer from FLSA provisions? (You may select more than one answer.)

1.

A) The firm has annual volume of less than $500,000.

2.

B) The firm is a school for physically handicapped children.

3.

C) The firm is a governmental agency.

4.

D) The firm conducts no interstate commerce.

Answer: A, D Difficulty: 2 Medium

Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Understand AACSB: Communication Accessibility: Keyboard Navigation

16) The difference between the federal minimum wage and the tipped wage involves: 1.

2.

3.

4.

A) The type of work the employee performs.

B) An employee’s qualifications for the job.

C) The size of the town in which the employers is located.

D) Supervisory reviews about the employee’s performance.

Answer: A Difficulty: 2 Medium Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

17) Which of the following is always true about tipped employees?

1.

2.

3.

4.

A) The minimum wage for tipped employees is consistent among all states.

B) They have the opportunity to earn tips from patrons as a regular part of their job.

C) They only earn occasional tips from other employees.

D) They must earn more than 50% of their income from tips.

Answer:B Difficulty: 2 Medium Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Analyze AACSB: Reflective Thinking Accessibility: Keyboard Navigation

18) Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week, he earned $60 in tips. Which of the following is true?

75.

A) Vincent does not have to report his tips for the week because they were less than $75.

76.

B) Vincent’s employer may not report his tips for income tax purposes.

77.

C) Vincent’s employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage.

78.

D) Vincent must file a request with his employer to have the tip credit applied to his wages for the week.

Answer: C Difficulty: 2 Medium Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

19) Cole is a minimum wage employee in Santa Fe, NM, where the minimum wage is $10.91 per hour. His employer claims that since the federal minimum wage is $7.25 per hour, Cole should only receive the federal amount. What is the correct answer in this situation?

1.

A) The employer has the discretion to pay either the federal or the statedesignated minimum wage.

2.

B) The employer may choose to pay less than the state-designated minimum wage, based on the employee’s qualifications and job description.

3.

C) The employer is correct that the federal minimum wage overrules the state wage.

4.

D) The employer must pay the state-designated minimum wage for the area.

Answer: D Difficulty: 1 Easy Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers Bloom’s: Evaluate AACSB: Ethics Accessibility: Keyboard Navigation

20) Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a calendar year, she earned $1,250 in babysitting wages. What is true about Paloma’s wages?

1.

A) The family must treat her as a domestic employee and abide by FLSA regulations.

2.

B) Paloma does not earn enough to be considered a domestic employee so FLSA rules do not apply.

3.

C) Paloma is not considered an employee, but certain FLSA provisions apply.

4.

D) Since the family conducts no interstate commerce, FLSA provisions cannot apply.

Answer: B Difficulty: 3 Hard Topic: Analyze Minimum Wage Pay for Nonexempt Workers Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt Workers

Bloom’s: Evaluate AACSB: Reflective Thinking Accessibility: Keyboard Navigation

21) The minimum wage for salaried employees is: 1.

2.

3.

4.

A) $455/week.

B) $476/week.

C) $513/week.

D) $523/week.

Answer: A Difficulty: 1 Easy Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

22) Which of the following is true about salaried employees? (You may select more than one answer.)

1.

They may not work more than 45 hours per week.

2.

The minimum wage is $7.25 per hour.

3.

The minimum annual salary is $23,660.

4.

They are not subject to provisions of FLSA.

Answer: C, D Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases

Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

23) Sahar earns a salary of $31,500 per year as a nonexempt employee with a 35-hour standard workweek. What is her hourly rate? (Round to the nearest cent.)

15.

A) $15.82 per hour 16.

B) $16.31 per hour 17.

C) $16.89 per hour 18.

D) $17.31 per hour

Answer: D Explanation: Annual salary

Hours/Week

Weeks/Year

$31,500.00

35

52

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

24) Humberto is a salaried, nonexempt worker who earns $43,950 per year and has a standard 45hour workweek. What is his hourly rate? (Round to the nearest cent.)

21.

A) $21.04 per hour

22.

23.

24.

B) $18.78 per hour C) $19.98 per hour D) $20.23 per hour

Answer: B Explanation: Annual salary

Hours/Week

Weeks/Year

$43,950.00

45

52

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

25) Tony is a salaried, nonexempt employee who earns $37,400 for a standard 40-hour workweek.

During a biweekly pay period, he worked 3.5 hours overtime. What is his overtime-hourly rate? (Round to the nearest cent.)

17.

A) $17.98 per hour 18.

B) $24.49 per hour 19.

C) $26.97 per hour 20.

D) $29.23 per hour

Answer: C Explanation: Annual salary

Hours/Week

Weeks/Year

G

$37,400.00

40

52

$

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

26) Diane is a salaried, nonexempt worker with a standard workweek of 40 hours. During the last weekly pay period, she earned $148.24 in overtime pay for 5 hours overtime. What is her annual salary? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

1.

A) $42,500 2.

B) $41,112 3.

C) $44,950 4.

D) $48,720

Answer: B Explanation: Overtime pay ÷ (OT hours × Overtime Premium) = Hourly wage Hourly wage × hours/week × weeks/year = Annual salary

Overtime pay

OT hours

Overtime Premium

Hourly wage

Hours/week

$148.24

5

1.5

$19.77

40

Difficulty: 3 Hard Topic: Compute Gross Pay for Different Pay Bases

Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation

27) Breon works as a clerk in the human resources department for her company for which she receives an hourly rate of $9.50. Occasionally she fills in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period, she worked 35 hours in the human resources department and 5 hours at the front desk. What is Breon’s gross pay for the week?

387.

388.

389.

390.

A) $387.50 B) $347.50 C) $380.00 D) $393.00

Answer: A Explanation: Department

Rate

# Hours

HR

$

9.50

35

Front Desk

$

11.00

5 Total

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases; Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours

Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

28) Al works in the warehouse for his company and receives $12.75/hour. He occasionally works in the Quality Assurance (QA) department as a receiving clerk and earns a 15% differential for hours worked there. During a two-week pay period, he worked 72 hours in the warehouse and 12 hours in the QA department. He worked all overtime hours in the warehouse. Standard workweek has 40 hours. What is his gross pay for the pay period? (Do not round intermediate calculations.

Round your answer to 2 decimal places.)

71.

A) $1,071.00 72.

B) $1,096.50 73.

C) $1,042.95 74.

D) $1,119.45

Answer: D Explanation: Department

Rate

# Hours

Warehouse

$

12.75

68

Warehouse–OT

$

19.13

4

QA

$

14.66

12

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases; Calculate Pay Based on Hours and Fractions of Hours

Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

29) Taylor is an outside salesperson for a firm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period, she made $2,750 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards?

1.

2.

3.

4.

A) $275; $0 B) $250; $205 C) $455; $0 D) $275; $180

Answer: A Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

30) Lynda works as a sales representative for her company. Her job requires her to travel to customer sites to meet with her customers. Which of the following pay bases would be the most appropriate for her?

1.

2.

3.

4.

A) Hourly B) Salary C) Commission D) Piece-rate

Answer: C Difficulty: 1 Easy Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

31) Bill is an exempt employee whose annual pay is $53,600 for 37.5 hours per week. During a twoweek period, company employees were given a two-day holiday. What is Bill’s regular pay and holiday pay for the period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

649. A) $1,649.23; $412.31 650. B) $1,785.67; $602.38 651. C) $1,630.77; $615.48 652. D) $1,529.74; $603.92

Answer: A Explanation: Annual salary

Hours/Week

Weeks/Year

$53,600

37.5

52

Pay type

Rate

# Hours

Regular

$

27.49

60

holiday

$

27.49

15

Difficulty: 3 Hard Topic: Compute Gross Pay for Different Pay Bases; Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

32) Phillippe is an inside salesperson who earns a base annual salary of $24,000 plus a 5% commission on total sales that he makes during the pay period. During a semimonthly period, he made $27,500 in sales. What is Phillippe’s gross pay for the period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

298. A) $2,298.07 299. B) $2,390.38 300. C) $2,375.00 301. D) $2,422.50

Answer: C Explanation: Hourly Rate or Period wage

Commissions

$ 1,000.00

$ 1,375.00

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases; Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours

Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

33) Clark is a piece rate worker who earns $8.25 per completed unit. During a 40-hour workweek, Clark completed 57 units. What is Clark’s hourly rate?

15.

16.

17.

18.

A) $15.21 per hour B) $11.76 per hour C) $13.98 per hour D) $12.22 per hour

Answer: B Explanation: Pay/Unit

# Units completed

Gross pay

$ 8.25

57

$ 470.25

Difficulty: 2 Medium Topic: Compute Gross Pay for Different Pay Bases Learning Objective: 03-02 Compute Gross Pay for Different Pay Bases Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

34) Quinn works the following hours during a one-week period:

Day

Hours

Monday

8

Tuesday

7

Wednesday

7

Thursday

8

Friday

8

Under the hundredth-hour method, how many hours has he worked?

41.

42.

43.

44.

A) 41.25 hours B) 41.85 hours C) 41.53 hours D) 41.20 hours

Answer: D Explanation: Day

Hours

Minutes

Monday

8

34

Tuesday

7

56

Wednesday

7

58

Thursday

8

42

Friday

8

2

Total hours

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

35) Brandie is an hourly worker whose employer uses the quarter-hour method. During a one-week period, she worked the following hours:

Day

In

Out

Monday

8:03

12:00

Tuesday

7:57

11:45

Wednesday

8:08

12:15

Thursday

8:02

12:28

Friday

7:52

12:05

Using the quarter-hour method, how many hours did she work that week?

39.

40.

41.

42.

A) 39.50 hours B) 39.75 hours C) 40.00 hours D) 40.25 hours

Answer: D Explanation: AM Monday

4

Tuesday

3.75

Wednesday

4

Thursday

4.5

Friday

4.25

Total hours

Difficulty: 3 Hard Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

36) Brandie is an hourly worker whose employer uses the hundredth-hour method. During a oneweek period, she worked the following hours:

Day

In

Out

Monday

8:03

12:00

Tuesday

7:57

11:45

Wednesday

8:08

12:15

Thursday

8:02

12:28

Friday

7:52

12:05

Using the hundredth-hour method, how many hours did she work that week? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

40.

A) 40.17 hours 41.

B) 40.21 hours 42.

C) 40.27 hours 43.

D) 41.26 hours

Answer: C Explanation: Day

In

Out

#hrs

Monday

8:03

12:00

3.95

Tuesday

7:57

11:45

3.80

Wednesday

8:08

12:15

4.12

Thursday

8:02

12:28

4.43

Friday

7:52

12:05

4.22

Difficulty: 3 Hard Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

37) Brendan is an hourly worker. During a week’s pay period, he worked the following hours and minutes:

Day

Hours

Monday

8

Tuesday

7

Wednesday

8

Thursday

9

Friday

8

Using the quarter-hour method, how many total hours did Brendan work that week?

41.

42.

43.

44.

A) 41.75 hours B) 42.50 hours C) 43.25 hours D) 42.25 hours

Answer: B Explanation: Day

Hours

Minutes

Monday

8

45

Tuesday

7

52

Wednesday

8

0

Thursday

9

36

Friday

8

24 Total

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

38) Brendan is an hourly worker and earns $15.25/hour. During a week’s pay period, he worked the following hours and minutes:

Day

Hours

Monday

8

Tuesday

7

Wednesday

8

Thursday

9

Friday

8

Using the hundredth-hour method, what is Brendan’s gross pay for the week? The employer pays overtime for all time worked in excess of 40 hours per week. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

670. A) $670.00 671. B) $649.90 672. C) $669.86 673. D) $650.00

Answer: C Explanation: Pay type

Rate

# Hours

Regular

$

15.25

40

OT

$

22.88

2.6166667

Day

Hours

Minutes

Monday

8

45

Tuesday

7

52

Wednesday

8

0

Thursday

9

36

Friday

8

24 Total

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

39) Betsy is a salaried nonexempt worker who earns $39,500 per year for a 40-hour workweek.

During a weekly pay period, she worked the following hours:

Day

Hours

Monday

8

Tuesday

8

Wednesday

9

Thursday

7

Friday

8

Her employer uses a hundredth-hour method to computer overtime pay. The employer pays overtime for all time worked in excess of 40 hours per week. What is Betsy’s gross pay for the week? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

819. A) $819.44 820. B) $759.62 821. C) $799.52 822. D) $831.30

Answer: D Explanation: Annual salary

Hours/Week

Weeks/Year

$39,500

40

52

Day

Hours

Minutes

Monday

8

22

Tuesday

8

45

Wednesday

9

43

Thursday

7

33

Friday

8

8 Total

Pay type

Rate

# Hours

Regular

$

18.99

40

OT

$

28.49

2.5166667

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

40) Thaddeus is a salaried exempt worker who earns $57,500 per year for a 45-hour workweek.

During a biweekly pay period, he worked 105 hours. What is his gross pay?

211.

A) $2,211.54

212.

213.

214.

B) $2,764.42 C) $2,395.83 D) $2,579.85

Answer: A Explanation: Name

Hourly Rate or Period Wage

Thaddeus

$ 2,211.54

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

41) Maryann is a salaried exempt worker who earns $45,000 per year for a 35-hour workweek.

During a biweekly pay period, she worked 65 hours. What is her gross pay?

607.

608.

609.

610.

A) $1,607.45 B) $1,730.77 C) $1,916.21 D) $1,823.45

Answer: B Explanation: Name

Hourly Rate or Period Wage

Maryann

$ 1,730.77

Difficulty: 2 Medium Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

42) Alan is an hourly worker who earns $10.50 per hour and is paid overtime for any time over 40 hours per week. During a weekly period, he worked the following hours:

Day

In

Out

Monday

7:53

12:04

Tuesday

7:42

11:30

Wednesday

7:48

12:35

Thursday

8:08

12:22

Friday

7:35

12:13

What is his gross pay for the week using both quarter-hour and hundredth hour methods? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

420.

421.

422.

423.

A) $420.00; $439.69 B) $ 435.75; $439.43 C) $420.00; $429.67 D) $420.00; $434.69

Answer: B Explanation: Quarter hour:

Day

In

Out

#hrs

Monday

7:53

12:04

4.00

Tuesday

7:42

11:30

3.75

Wednesday

7:48

12:35

4.75

Thursday

8:08

12:22

4.00

Friday

7:35

12:13

4.75

Pay type

Rate

# Hours

Regular

$

10.50

40

OT

$

15.75

1.00

Hundredth hour:

Day

In

Out

#hrs

Monday

7:53

12:04

4.18

Tuesday

7:42

11:30

3.80

Wednesday

7:48

12:35

4.78

Thursday

8:08

12:22

4.23

Friday

7:35

12:13

4.63

Pay type

Rate

# Hours

Regular

$

10.50

40

OT

$

15.75

1.23

Difficulty: 3 Hard Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Evaluate AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) Libby is an hourly employee who earns $14.32/hour. She is paid overtime only for hours worked past 40 in one week. During a weekly pay period, she worked the following hours:

Day

Hours

Monday

8

Tuesday

8

Wednesday

6

Thursday

9

Friday

7

What is the difference between her pay using the quarter-hour and the hundredth-hour methods?

Which method pays Libby the greater amount? (Do not round intermediate calculations.

Round your answer to 2 decimal places.)

1.

A) $1.07; Quarter-hour 2.

B) $1.07; Hundredth-hour 3.

C) $2.86; Quarter-hour 4.

D) $2.86; Hundredth-hour

Answer: D Explanation:

Quarter hour pay

Hundredth hour pay

$583.54

$586.40

Quarter hour

Day

Hours

M

Monday

8

4

Tuesday

8

2

Wednesday

6

2

Thursday

9

6

Friday

7

5

T

Pay type

Rate

Regular

$

14.32

40

OT

$

21.48

0.50

Hundredth hour

# Hours

Day

Hours

Min

Monday

8

47

Tuesday

8

22

Wednesday

6

25

Thursday

9

6

Friday

7

58

Tota

Pay type

Rate

Regular

$

14.32

40

OT

$

21.48

0.633

Difficulty: 3 Hard Topic: Calculate Pay Based on Hours and Fractions of Hours Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of Hours Bloom’s: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation

# Hou