Instruction 2-1 Unless Instructed Otherwise, Compute Hourly Rate and Overtime

question 39

Essay

Instruction 2-1 Unless instructed otherwise, compute hourly rate 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, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Refer to Instruction 2-1 . Gorman is paid $10.50 per hour for a 35-hour workweek. This past week, he worked an
extra 10 hours on a job at a pay rate of $13.00 per hour. If he is only paid overtime for hours over 40 and the
employer uses the average rate method, his total earnings for the 45 hours of work were __________.

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Definitions:

Required Rate

The minimum yearly earnings percentage necessary to lure individual or corporate investors into a specific project or security.

Payback Period

The timeframe required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return on an investment over a multi-year period.

Multiple Rates Of Return

One potential problem in using the Internal Rate of Return method if more than one discount rate makes the Net Present Value of an investment zero.