Question 1

Andre is works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates.His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month.During the month of June,he decorated eight wedding cakes with a total retail value of $2,650.What is Andre's gross pay for the first week in July? (Do not round intermediate calculations.Round final answer to 2 decimal places.)

Accepted Answer

A)  $1,427.53 
B)  $1,485.96 
C)  $1,239.42 
D)  $1,526.78

Question 2

Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan.He receives annually $150,000 semi-monthly in base salary plus 25 shares of the firm's stock per month.The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share.What is Lloyd's gross pay for mid-October?

Accepted Answer

A)  $7,250 
B)  $6,250 
C)  $7,560 
D)  $8,250

Question 3

With regards to salaried employees,employers must not:

Accepted Answer

A)  Offer overtime pay for hour in excess of a standard workweek. 
B)  Compensate employees for time away from work. 
C)  Prorate an employee's pay for hours worked under contract. 
D)  Require employees to work more hours than their contracted amount.

Question 4

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 5

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 6

Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.51 per hour.His employer claims that since the Federal minimum wage is $7.25 per hour,Cole should only receive the Federal amount.What is the correct answer in this situation?

Accepted Answer

A)  The employer has the discretion to pay either the Federal or the state-designated minimum wage. 
B)  The employer may choose to pay less than the state-designated minimum wage, based on the employee's qualifications and job description. 
C)  The employer is correct that the Federal minimum wage overrules the state wage. 
D)  The employer must pay the state-designated minimum wage for the area.

Question 7

Alan is an hourly worker who earns $10.50 per hour and is paid overtime for any time over 8 hours per day.During a weekly period,he worked the following hours: $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Day } & \text { In } & \text { Out } & \text { In } & \text { Out } \
\hline \text { Monday } & 7 : 53 & 12 : 04 & 13 : 15 & 17 : 25 \
\hline \text { Tuesday } & 7 : 42 & 11 : 30 & 12 : 35 & 16 : 45 \
\hline \text { Wuednes day } & 7 : 48 & 12 : 35 & 13 : 28 & 17 : 25 \
\hline \text { Thursday } & 8 : 08 & 12 : 22 & 13 : 45 & 17 : 37 \
\hline \text { Friday } & 7 : 35 & 12 : 13 & 13 : 15 & 16 : 42 \
\hline
\end{array}$$ 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)  $439.69; $439.60 
C)  $420.00; $429.67 
D)  $420.00; $434.69

Question 8

Brittany is a full-time college student and is 21 years of age.Her employer has the option to pay her less than the Federal minimum wage.What is the minimum hourly rate that Brittany may receive?

Accepted Answer

A)  $7.25 per hour 
B)  $4.25 per hour 
C)  $6.16 per hour 
D)  $5.80 per hour

Question 9

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 10

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 11

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 12

Salaried employees may not be classified as nonexempt.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Bruce is a salaried nonexempt employee who earns $42,500 annually,semi-monthly salary plus a 0.25% commission on all regional sales,paid monthly on the first pay date of the following month.During the month of May,the regional sales were $103,500.What was her gross pay for the first half of June? (Do not round intermediate calculations.Round final answer to 2 decimal places.)

Accepted Answer

A)  $2,029.58 
B)  $1,770.83 
C)  $1,634.62 
D)  $1,893.37

Question 15

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 16

Indra is an employee who is required to be on-call at her employer's site once per month for eight hours.She earns a salary of $58,750 per year for a 45-hour workweek and is paid biweekly.What is Indra's gross pay for a pay period that include on-call time? (Do not round interim calculations.Round final answer to two decimal places.)

Accepted Answer

A)  $2,447.92 
B)  $2,259.62 
C)  $2,460.47 
D)  $2,648.77

Question 17

Clark is a piece rate worker who earns $8.25 per completed unit.During a 40-hour workweek,Clark completed 57 units.What is Clark's hourly rate?

Accepted Answer

A)  $15.21 per hour 
B)  $11.76 per hour 
C)  $13.98 per hour 
D)  $12.22 per hour

Question 18

Alix is a salesperson who receives an annual salary of $18,000 paid semi-monthly 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 19

Maryann is a salaried exempt worker who earns $45,000 per year for a 35-hour workweek.During a biweekly pay period,she worked 65 hours.What is her gross pay?

Accepted Answer

A)  $1,607.45 
B)  $1,730.77 
C)  $1,916.21 
D)  $1,823.45

Question 20

Brendan is an hourly worker and earns $15.25/hour.During a week's pay period,he worked the following hours and minutes: $$\begin{array} { | l | c | c | } 
\hline \text { Day } & \text { hours } & \text { minutes } \
\hline \text { Monday } & 8 & 45 \
\hline \text { Tuesday } & 7 & 52 \
\hline \text { Wednesday } & 8 & 0 \
\hline \text { Thursday } & 9 & 36 \
\hline \text { Friday } & 8 & 24 \
\hline
\end{array}$$ Using the hundredth-hour method,what is Brendan's gross pay for the week? The employer pays overtime for all time worked in excess of 40 hours per week.(Do not round interim calculations.Round final answer to 2 decimal places.)

Accepted Answer

A)  $670.00 
B)  $649.90 
C)  $669.86 
D)  $650.00

Exam 3: Gross Pay Computation