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

Question

Quizplus · Accepted Answer

First, we need to find Tony's hourly rate for his standard 40-hour workweek. We can do this by dividing his annual salary by the number of hours he works in a year:

$37,400 / (52 weeks/year * 40 hours/week) = $18.01 per hour

Next, we need to calculate Tony's overtime rate, which is 1.5 times his regular hourly rate. So:

$18.01 * 1.5 = $27.02 per hour

Finally, we can calculate Tony's overtime pay for the biweekly period, which is the number of overtime hours he worked multiplied by his overtime hourly rate:

3.5 hours * $27.02/hour = $94.57

Therefore, Tony's overtime-hourly rate is $27.02 per hour, which rounds to $26.97 per hour (D).

Tony Is a Salaried, Nonexempt Employee Who Earns $37,400 for a Standard