An employee earns $1,562.50 for 55 hours of work during last week. His regular workweek is 40 hours and he gets overtime at time and one-half the regular rate of pay. What is the regular hourly rate of pay?
A) $37.50
B) $28.41
C) $42.61
D) $58.59
E) $25.00

Question

Quizplus · Accepted Answer

The employee's regular hourly rate can be calculated by first determining the overtime pay and then the regular pay. For 55 hours of work, 15 hours are overtime (55 - 40 = 15). Overtime pay is 1.5 times the regular rate. Let's denote the regular hourly rate as R. The total pay is for 40 hours at the regular rate plus 15 hours at 1.5 times the regular rate, which equals $1,562.50. The equation is 40R + 15(1.5R) = 1,562.50. Solving for R gives us R = $25.00.

An Employee Earns $1,562