Question 1

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)

Accepted Answer

A)  $17.98 per hour 
B)  $24.49 per hour 
C)  $26.97 per hour 
D)  $29.23 per hour

Question 2

During his first month of employment,Alix took a draw of 5% against his minimum sales amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount.He receives $18,000 annually in base salary plus a 5% commission on his sales.He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month.During his second month of employment,Alix sold $24,000 of equipment.What is Alix's gross pay for the end of the second month of employment?

Accepted Answer

A)  $1,950.00 
B)  $1,500,00 
C)  $1,350.00 
D)  $1,200,00

Question 3

Weishan is a full-time student at a vocational school where he is learning automotive repair.He works for a local car repair garage and works 21 hours per week.The minimum wage is the same as the Federal minimum wage.His gross pay per week is _____________________.(Do not round interim calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $89.25. 
B)  $114.19. 
C)  $129.41. 
D)  $152.25.

Question 4

Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?

Accepted Answer

A)  Disabled employees in occupations unrelated to their disability 
B)  Full-time college students in agricultural occupations 
C)  A 16 year-old employee in the first 90 days of work 
D)  A student learner currently enrolled in a vocational education program

Question 5

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

Accepted Answer

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

Question 6

Martha is a regional supervisor who earns a base salary of $35,000 per year plus a 1% commission on all service contracts that she sells to existing customers.The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis.As of September 30,Martha had made $35,950 in contract sales for the third quarter.What will be her gross pay on her next pay date? (Do not round interim calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $1,458.33 
B)  $1,817.83 
C)  $2,053.13 
D)  $1,705.65

Question 7

What does it mean to prove the payroll register?

Accepted Answer

A)  Gaining approval to disburse payroll amounts. 
B)  Verifying the validity of employees' time sheets. 
C)  Ensuring that the sum of the column totals equals the sum of the row totals. 
D)  Computing the column and row totals.

Question 8

Arnelle is in her third month of work for her employer.She is 18 years of age.Her working hours,computed on a quarter-hour basis,were as follows for the current weekly Arnelle receives the minimum wage,according to the 1996 FLSA Amendment.What is her gross pay for the week using actual hours?

Accepted Answer

A)  $290.00 
B)  $246.50 
C)  $145.00 
D)  $170.00

Question 9

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?

Accepted Answer

A)  Vincent does not have to report his tips for the week because they were less than $75. 
B)  Vincent's employer may not report his tips for income tax purposes. 
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. 
D)  Vincent must file a request with his employer to have the tip credit applied to his wages for the week.

Question 10

Diane is a salaried,nonexempt worker with 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 final answer to the nearest whole dollar. )

Accepted Answer

A)  $42,500 
B)  $41,112 
C)  $44,950 
D)  $48,720

Question 11

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 interim calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $1,071.00 
B)  $1.096.50 
C)  $1,042.95 
D)  $1,119.45

Question 12

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)

Accepted Answer

A)  $15.82 per hour 
B)  $16.31 per hour 
C)  $16.89 per hour 
D)  $17.31 per hour

Question 13

Which of the following items would not appear as a column on a payroll register?

Accepted Answer

A)  Hiring date 
B)  Marital status 
C)  Number of withholding allowances 
D)  Hours worked

Question 14

Which of the following is always true about tipped employees?

Accepted Answer

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.

Question 15

Lawrin is a real-estate salesperson whose compensation is commission-only.She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement).During the month of July,Lawrin sold two houses totaling $385,420.What is her gross pay for the month of July?

Accepted Answer

A)  $5,620.00 
B)  $5,781.30 
C)  $11,562.00 
D)  $8,623.50

Question 16

Alix is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month.During his first month of employment,he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales,in accordance with his employment agreement.How much should Alix receive in his gross pay for the end of his first month?

Accepted Answer

A)  $800.00 
B)  $1,250.00 
C)  $1,550.00 
D)  $1,750.00

Question 17

The purpose of using combination pay methods is to:

Accepted Answer

A)  Reduce salary expenses by offering variable compensation. 
B)  Cross-train employees in various company functions. 
C)  Offer employees an incentive for increased performance. 
D)  Meet minimum wage requirements and offer pay for performance.

Question 18

Computing the sum of rows and columns is known by the term

Accepted Answer

A)  Compute. 
B)  Total. 
C)  Prove. 
D)  Rule.

Question 19

Ronda is a college professor who earns an annual salary of $55,000.She performs an additional function as a tutor in the student center,for which she receives $21.83 per hour.During a biweekly pay period,Ronda worked 7.5 hours in the student center.What is her gross pay for the period? (Do not round intermediate calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $2,115.38 
B)  $2,291.67 
C)  $2,455.39 
D)  $2,279.11

Question 20

Grainne is an inside salesperson who earns an annual salary of $32,800 (paid biweekly)plus a commission on quarterly sales that is paid on the first pay date on the next quarter.She receives a 1% commission for quarterly sales totaling $0 to $25,000,a 2% commission for quarterly sales totaling between $25,001 and $50,000,and a 3% commission for quarterly sales totaling over $50,001.During the second quarter,Grainne's quarterly sales totaled $46,750.What is her gross pay for the first pay period in July? (Do not round interim calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $1,729.04 
B)  $2,301.67 
C)  $2,196.54 
D)  $2,664.04

Exam 3: Gross Pay Computation