Question

• Stephen Curry, a manager at Oracle Arena, earns $745 for a fluctuating workweek. For overtime work, one-half times the regular rate beyond the 40 hours is paid. 3 hours of overtime was worked. Fluctuating Hours Total Standard Pay $ Overtime Hours Rate $ Variable Overtime Pay Fluctuating Workweek Gross Earnings $ • Assume instead that Stephen's employer pays based on a 40-hour workweek. Again, weekly earning are $745 and 3 hours overtime were worked. Fixed Salary Hours Regular Total Pay Overtime Hours Rate $ Overtime Total Pay Fixed Salary Gross Earnings $ • What would Stephen's gross earnings under a BELO plan be if the hourly rate was $15.65 per hour for a maximum 47 hours per week? BELO Plan Gross Earnings

Answer 1

Fluctuating Hours	43		Total Standard Pay	$745.00
Overtime Hours	3		Rate $	26		Variable Overtime Pay	$78.00
	Fluctuating Workweek Gross Earnings	$823.00
Fixed Salary Hours	40		Regular Total Pay	$745.00
Overtime Hours	3		Rate $	27.95		Overtime Total Pay	$83.85
	Fixed Salary Gross Earnings	$828.85
BELO Plan Gross Earnings	$696.44
Working Notes
Under fluctuating hours wages,the standard wage rate is derived by dividing the wages by the fluctuating hours
worked. Overtime wage rate is computed on the standard rate derived above
Standard Wage Rate = Weekly Wages / Total Fluctuating Hours Worked
= $ 745/ 43 hours
= $ 17.33 per hour
Overtime Rate = Standard Rate * 1.50
= $ 17.33 * 1.50
.= $ 26.00 per hour
Under fixed hours wages, normal wage rate is derived by dividing the wages by the fixed working hours.Overtime
wage rate is computed on the normal rate derived above
Normal Wage Rate = Weekly Wages / Fixed Working Hours
= $ 745/ 40 hours
= $ 18.63 per hour
Overtime Rate = Normal Rate * 1.50
= $ 18.63 * 1.50
.= $ 27.95 per hour
Under BELO plan,Stephan Curry would receive the wages at the specified rate for 40 hours of work and overtime
at one & half times the specified rate for the overtime hours worked with the limitation that the maximum number
of work hours during the week are limited to 50 hours
If the employee was paid a fixed weekly salary,he would not have been entitled to overtime.Since, he is paid on a
hourly rate, he is entitled to overtime above 40 hours of weekly work at 1.50 times the specified rate of wages
The wages under BELO plan would be as under:
	Hours Worked	Normal Rate	Overtime Rate @ 1.5 of Normal Rate	Wages
Normal Hours	40	$15.65	-	$626.00
Overtime Hours	3	-	$23.48	$70.44
Total Wages under BELO Plan	$696.44