Kyle forman worked 47 hours during the week for erickson company at two different jobs. his pay rate was $14.00 for the first 40 hours, and his pay rate was $11.80 for the other 7 hours. determine his gross pay for that week if the company uses the one-half average rate method.

Gross pay = $690.37

Explanation:

average hourly rate = ( (40×14)+(7×11.80) )/ (40+7)

average hourly rate = 642.60 / 47 = 13.67234043

average hourly rate = $ 13.67 per hour

Pay from first job (40 hours and $ 13.67 rate per hour)

Pay from first job = 40 × 13.67 = $ 546.80

the company uses one - half average rate method for overtime pay. 40 hours is considered normal working hours, hours above 40 are regarded as over time. Kyle Forman worked 47 hour ,the extra 7 hours will be regarded as overtime. The company uses one-half average rate pay method. the overtime hourly is 1.5 of the average hourly rate

overtime rate = 13.67 × 1.5 = 20.505 = 20.51

overtime pay =  7 × 20.51 = 143.57

Gross Pay = 546.80 + 143.57 = $ 690.37

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