Libby Is an Hourly Employee Who Earns $14

question 57

Multiple Choice

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:
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 interim calculations.Round final answer to two decimal places. )

• A) $1.07;Quarter-hour
• B) $1.07;Hundredth-hour
• C) $2.86;Quarter-hour
• D) $2.86;Hundredth-hour

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Definitions:

Depreciation Tax Shield

The reduction in income tax that results from the allowance for depreciation, which can be considered a non-cash expense that decreases taxable income.

Equivalent Annual Cost

Equivalent annual cost is a financial analysis tool used to compare the cost effectiveness of different projects or investments with differing lifespans by calculating their equivalent cost per year.

EAC

Equivalent Annual Cost, a financial analysis tool used to compare the cost effectiveness of different investments or projects over their lifecycles.

Compute

To calculate or process information using a computer or mathematical methods.