Question

SPW Industries employees several nonexempt employees. All employees are paid on a weekly basis. Please see the information below for Donnie Williams, one of the company’s nonexempt employees.

Position

Electrical Maintenance $30 per hour

Mechanical Engineering $32.50 per hour

Tax Information

Married

Three withholding allowances

Pay period Information

Monday – 15 hours – Electrical Maintenance

Tuesday – 15 hours – Electrical Maintenance

Wednesday – 15 hours – Electrical Maintenance

Thursday – 9 hours – Electrical Maintenance

Thursday – 6 hours – Mechanical Engineering

Friday – 12 hours – Mechanical Engineering

Saturday – 2 hours – Mechanical Engineering

Friday

54 hours – Electrical Maintenance

20 hours – Mechanical Engineering

Required

Using the weighted average method (Regulations 29 CFR 778.419), calculate the weekly gross pay for Donnie Williams. Round all calculations to two decimal places.

Answer 1

Answer 2

1)     Calculation of Weekly Gross Pay:

a)     Electrical Maintenance

Total Hours Worked * Rate per Hour = (40) * $30 = $12000.00

·       M = 15

·       Tu = 15

·       W = 15

·       Th = 9

·       F = 0

·       Sa = 0

(54 Hours total = 40 hours reg pay and 14 hours OT)

14 hours of OT = (14) * $45 = $630.00

 

b)     Mechanical Engineering

Total Hours Worked * Rate per Hour = (0) * $32.50 = $0.00

·       M = 0

·       Tu = 0

·       W = 0

·       Th = 6

·       F = 12

·       Sa = 2

(20 hours total = 0 hours of reg pay and 20 of OT)

20 hours of OT = (20) * $48.75 = $975.00

Gross Earnings = $1200.00 + $630.00 + $0.00 + $975.00 = $2805.00