PSc 27 Calculate Gross Pay with Commissions Calculate gross

PSc 2-7 Calculate Gross Pay with Commissions Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1: Dennis McDonald earns both $8.25/hour and a 11% commission on all sales. During the most recent week, he worked 44 hours and made total sales of $13,000. Gross Pay = $

2: Cathy Miller earns both $10/hour and $15 for every sale she completes. During the most recent week, she worked 45 hours and made a total of 75 sales. Gross Pay = $

3: Lenny Boyer earns both $7.50/hour and a 19% commission on all sales. During the most recent week, he worked 48 hours and made total sales of $8,000. Gross Pay = $

4: David White earns both $11/hour, $12 for every sale of Product A, and $15 for every sale of Product B. During the most recent week, he worked 51 hours and sold 35 units of Product A and 39 units of Product B. Gross Pay = $

5: Gary Montgomery earns both $18.25/hour and a 17% commission on all sales. During the most recent week, he worked 43 hours and made total sales of $15,000. Gross Pay = $

Solution

1. Calculation of regular Wages & overtime of Dennis

Regular Wages = 40 hours x $8.25 = $330

Overtime = 4 hours x $8.25 x 1.5 = $49.5

Calculation of Commission = $13,000 x 11% = $1,430

Total Gross Pay = 330 + 49.5 + 1,430 = $1,809.5

2. Calculation of Gross Pay for Cathy

Regular Wages = 40 hours x $10 = $400

Overtime Wages = 5 hours x $10 x 1.5 = $75

Commission = $15 x 75 = $1,125

Total Gross Pay = 400 + 75 + 1,125 = $1,600

3. Calculation of Gross pay for Lenny

Regular Wages = 40 hours x $7.5 = $300

Overtime Wages = 8 hours x $7.5 x 1.5 = $90

Commission = 8,000 x 19% = $1520

Total Gross Pay = 300 + 90 + 1520 = 1,910.

4. Calculation of Gross Pay for David

Regular Wages = 40 hours x $11 = $440

Overtime Wages = 11 hours x $11 x 1.5 = $181.5

Commission = Product A = $12 x 35 = $420

Commission = Product B = $15 x 39 = $585

Total Gross Pay = 440 + 181.5 + 420 + 585 = $1,626.5

5. Calculation of Gross Pay for Gary

Regular Wages = 40 hours x $18.25 = $730

Overtime Wages = 3 hours x $18.25 x 1.5 = $82.13

Commission = $15,000 x 17% = $2,550

Total Gross Pay = 730 + 82.13 + 2,550= $3,362.13