Libby is an hourly employee who earns $14.32/hour.She is paid overtime only for hours worked past 40 in one week.During a weekly pay period,she worked the following hours:
What is the difference between her pay using the quarter-hour and the hundredth-hour methods? Which method pays Libby the greater amount? (Do not round interim calculations.Round final answer to two decimal places. )
A) $1.07;Quarter-hour
B) $1.07;Hundredth-hour
C) $2.86;Quarter-hour
D) $2.86;Hundredth-hour

Question

Libby is an hourly employee who earns $14.32/hour.She is paid overtime only for hours worked past 40 in one week.During a weekly pay period,she worked the following hours:
 What is the difference between her pay using the quarter-hour and the hundredth-hour methods? Which method pays Libby the greater amount? (Do not round interim calculations.Round final answer to two decimal places. )
A) $1.07;Quarter-hour 
B) $1.07;Hundredth-hour 
C) $2.86;Quarter-hour 
D) $2.86;Hundredth-hour

Quizplus · Accepted Answer

First, we need to calculate Libby's total pay for the week using the two different methods:

Quarter-hour method:
Regular hours = 38.25 x $14.32 = $547.26
Overtime hours = (43.75 - 40) x $14.32 x 1.25 = $67.45
Total pay = $614.71

Hundredth-hour method:
Regular hours = 38.25 x $14.32 = $547.26
Overtime hours = (43.75 - 40) x $14.32 x 1.005 = $70.31
Total pay = $617.57

The difference between the two methods is:
$617.57 - $614.71 = $2.86

Therefore, the answer is D, the hundredth-hour method pays Libby the greater amount.

Libby Is an Hourly Employee Who Earns $14