Assume that John Smith is a salesperson employed by McCrackin Company. Smith's regular rate of pay is $36 per hour, and any hours worked in excess of 40 hours per week are paid at 1½ times the regular rate. Smith worked 42 hours for the week ended October 27. What are his total earnings for the week?

Accepted Solution

Answer: $1548Step-by-step explanation:We are told the normal rate of payment is $36 per hour and with an excess of 40 hours the pay will be 1 and a half the normal rate(1.5)And John works for 42hoursFor first we know John worked for an excess of 2 hours And calculating his pay for 40hours of the normal rate that week, we multiply $36 by 40 which will give $1440Then the extra 2 hours, the new pay rate will be $36 multiplied by 1.5 which will give $54 per hourAnd for the extra 2 hours, John will get extra $54 multiplied by 2 which will give $108Adding both $1440 and $108, we will get $1548