Payroll Accounting Jeanette Landin 5th Edition- Test Bank
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Sample Test
Payroll Accounting 2019, 5e (Landin)
Chapter 3 Gross Pay Computation
1) Gross pay is the amount of employee compensation prior to
deducting any amounts for taxes or other withholdings.
Answer: TRUE
Difficulty: 1 Easy
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Salaried employees may be classified as nonexempt.
Answer: TRUE
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) A firm is always exempt from FLSA provisions if it has fewer
than 5 employees.
Answer: FALSE
Explanation: FLSA coverage depends on annual sales volume,
the presence of interstate commerce, and the type of business, not the number
of employees.
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) The tipped minimum wage is $2.13 per hour for all states.
Answer: FALSE
Explanation: The tipped minimum wage varies among states.
Difficulty: 1 Easy
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Federal policy explains clear differences between exempt and
nonexempt employees.
Answer: FALSE
Explanation: Federal policy contains guidelines for exempt
employee classification, but no specific differences are delineated.
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) To compute the hourly rate for an employee with a 40-hour
standard workweek, you would divide the annual salary by 2,080.
Answer: TRUE
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Piece-rate pay is used for employees who participate
materially in the sale of manufacturing components.
Answer: FALSE
Explanation: Piece-rate pay is used for employees who
participate materially in the manufacturing of components.
Difficulty: 3 Hard
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) The hundredth-hour system promotes more accuracy in employee
time collection than the quarter-hour system.
Answer: TRUE
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The payroll register is a confidential company document.
Answer: TRUE
Difficulty: 1 Easy
Topic: Create a Payroll Register
Learning Objective: 03-05 Create a Payroll Register
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
10) To rule the payroll register means that the payroll
accountant establishes procedures about the payroll register.
Answer: FALSE
Explanation: Ruling the payroll register means that the
final totals are double underlined.
Difficulty: 1 Easy
Topic: Create a Payroll Register
Learning Objective: 03-05 Create a Payroll Register
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
11) The payroll register should be retained indefinitely, unlike
most other payroll documentation.
Answer: FALSE
Explanation: The payroll register should be retained for
the same amount of time as other payroll documents.
Difficulty: 1 Easy
Topic: Create a Payroll Register
Learning Objective: 03-05 Create a Payroll Register
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
12) Any employee may request a payroll draw against future
earnings.
Answer: FALSE
Explanation: Payroll draws are generally reserved for
commission-based employees.
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Compensatory time is only federally mandated for public
salaried exempt employees.
Answer: TRUE
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
14) Nonexempt employees are usually workers who:
1. A)
Routinely supervise other employees.
2. B)
Are exempt from certain company rules.
3. C)
Occupy executive positions in the company.
4. D)
Perform operative level tasks.
Answer: D
Difficulty: 1 Easy
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
15) Which of the following automatically exempts an employer
from FLSA provisions? (You
may select more than one answer.)
1. A)
The firm has annual volume of less than $500,000.
2. B)
The firm is a school for physically handicapped children.
3. C)
The firm is a governmental agency.
4. D)
The firm conducts no interstate commerce.
Answer: A, D
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
16) The difference between the federal minimum wage and the
tipped wage involves:
1. A)
The type of work the employee performs.
2. B) An
employee’s qualifications for the job.
3. C)
The size of the town in which the employers is located.
4. D)
Supervisory reviews about the employee’s performance.
Answer: A
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
17) Which of the following is always true about tipped
employees?
1. A)
The minimum wage for tipped employees is consistent among all states.
2. B)
They have the opportunity to earn tips from patrons as a regular part of their
job.
3. C)
They only earn occasional tips from other employees.
4. D)
They must earn more than 50% of their income from tips.
Answer:B
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
18) Vincent is a tipped employee who earns a wage of $2.13 per
hour in a tip-credit state and works a standard 40-hour workweek. Last week, he
earned $60 in tips. Which of the following is true?
75.
A) Vincent does not have to report his tips for the week because
they were less than $75.
76.
B) Vincent’s employer may not report his tips for income tax
purposes.
77.
C) Vincent’s employer must pay him the tip credit because his
wages and tips for the week were less than the federal minimum wage.
78.
D) Vincent must file a request with his employer to have the tip
credit applied to his wages for the week.
Answer: C
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) Cole is a minimum wage employee in Santa Fe, NM, where the
minimum wage is $10.91 per hour. His employer claims that since the federal
minimum wage is $7.25 per hour, Cole should only receive the federal amount.
What is the correct answer in this situation?
1. A)
The employer has the discretion to pay either the federal or the
state-designated minimum wage.
2. B)
The employer may choose to pay less than the state-designated minimum wage,
based on the employee’s qualifications and job description.
3. C)
The employer is correct that the federal minimum wage overrules the state wage.
4. D)
The employer must pay the state-designated minimum wage for the area.
Answer: D
Difficulty: 1 Easy
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
20) Paloma is a 16-year-old who babysits for a local family on
an occasional basis. During a calendar year, she earned $1,250 in babysitting
wages. What is true about Paloma’s wages?
1. A)
The family must treat her as a domestic employee and abide by FLSA regulations.
2. B)
Paloma does not earn enough to be considered a domestic employee so FLSA rules
do not apply.
3. C) Paloma
is not considered an employee, but certain FLSA provisions apply.
4. D)
Since the family conducts no interstate commerce, FLSA provisions cannot apply.
Answer: B
Difficulty: 3 Hard
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Evaluate
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
21) The minimum wage for salaried employees is:
1. A)
$455/week.
2. B)
$476/week.
3. C)
$513/week.
4. D)
$523/week.
Answer: A
Difficulty: 1 Easy
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
22) Which of the following is true about salaried
employees? (You
may select more than one answer.)
1. They
may not work more than 45 hours per week.
2. The
minimum wage is $7.25 per hour.
3. The
minimum annual salary is $23,660.
4. They
are not subject to provisions of FLSA.
Answer: C, D
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) Sahar earns a salary of $31,500 per year as a nonexempt
employee with a 35-hour standard workweek. What is her hourly rate? (Round to the nearest cent.)
15.
A) $15.82 per hour
16.
B) $16.31 per hour
17.
C) $16.89 per hour
18.
D) $17.31 per hour
Answer: D
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Gross pay per period |
|
$31,500.00 |
35 |
52 |
$17.31 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) Humberto is a salaried, nonexempt worker who earns $43,950
per year and has a standard 45-hour workweek. What is his hourly rate? (Round to the nearest cent.)
21.
A) $21.04 per hour
22.
B) $18.78 per hour
23.
C) $19.98 per hour
24.
D) $20.23 per hour
Answer: B
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Gross pay per period |
|
$43,950.00 |
45 |
52 |
$18.78 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) Tony is a salaried, nonexempt employee who earns $37,400 for
a standard 40-hour workweek. During a biweekly pay period, he worked 3.5 hours
overtime. What is his overtime-hourly rate? (Round to the nearest cent.)
17.
A) $17.98 per hour
18.
B) $24.49 per hour
19.
C) $26.97 per hour
20.
D) $29.23 per hour
Answer: C
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Gross pay per period |
Overtime rate |
|
$37,400.00 |
40 |
52 |
$17.98 |
$26.97 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) Diane is a salaried, nonexempt worker with a standard
workweek of 40 hours. During the last weekly pay period, she earned $148.24 in
overtime pay for 5 hours overtime. What is her annual salary? (Do not round intermediate calculations.
Round your answer to the nearest whole dollar.)
1. A)
$42,500
2. B)
$41,112
3. C)
$44,950
4. D)
$48,720
Answer: B
Explanation: Overtime pay ÷ (OT hours × Overtime Premium)
= Hourly wage
Hourly wage × hours/week × weeks/year = Annual salary
|
Overtime pay |
OT hours |
Overtime Premium |
Hourly wage |
Hours/week |
Weeks/year |
Annual Salary |
|
$148.24 |
5 |
1.5 |
$19.77 |
40 |
52 |
$41,112 |
Difficulty: 3 Hard
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
27) Breon works as a clerk in the human resources department for
her company for which she receives an hourly rate of $9.50. Occasionally she
fills in for the receptionist at the front desk and receives a $1.50 per hour
differential. During a weekly pay period, she worked 35 hours in the human
resources department and 5 hours at the front desk. What is Breon’s gross pay
for the week?
387.
A) $387.50
388.
B) $347.50
389.
C) $380.00
390.
D) $393.00
Answer: A
Explanation:
|
Department |
Rate |
# Hours |
Gross pay |
|
|||||
|
HR |
$ |
9.50 |
35 |
$ |
332.50 |
|
|||
|
Front Desk |
$ |
11.00 |
5 |
$ |
55.00 |
|
|||
|
|
|
|
Total |
$ |
387.50 |
|
|||
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases;
Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) Al works in the warehouse for his company and receives
$12.75/hour. He occasionally works in the Quality Assurance (QA) department as
a receiving clerk and earns a 15% differential for hours worked there. During a
two-week pay period, he worked 72 hours in the warehouse and 12 hours in the QA
department. He worked all overtime hours in the warehouse. Standard workweek
has 40 hours. What is his gross pay for the pay period? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
71.
A) $1,071.00
72.
B) $1,096.50
73.
C) $1,042.95
74.
D) $1,119.45
Answer: D
Explanation:
|
Department |
Rate |
# Hours |
Gross pay |
|
|||
|
Warehouse |
$ |
12.75 |
68 |
$ |
867.00 |
||
|
Warehouse–OT |
$ |
19.13 |
4 |
$ |
76.50 |
||
|
QA |
$ |
14.66 |
12 |
$ |
175.95 |
||
|
|
|
|
|
$ |
1,119.45 |
||
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases;
Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) Taylor is an outside salesperson for a firm in Idaho. She
earns a 10% commission on all sales she makes. During a one-week pay period,
she made $2,750 in sales. What is her gross pay? How much does her employer
need to contribute toward her pay to meet FLSA standards?
1. A)
$275; $0
2. B)
$250; $205
3. C)
$455; $0
4. D)
$275; $180
Answer: A
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) Lynda works as a sales representative for her company. Her
job requires her to travel to customer sites to meet with her customers. Which
of the following pay bases would be the most appropriate for her?
1. A)
Hourly
2. B)
Salary
3. C)
Commission
4. D)
Piece-rate
Answer: C
Difficulty: 1 Easy
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
31) Bill is an exempt employee whose annual pay is $53,600 for
37.5 hours per week. During a two-week period, company employees were given a
two-day holiday. What is Bill’s regular pay and holiday pay for the
period? (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
649.
A) $1,649.23; $412.31
650.
B) $1,785.67; $602.38
651.
C) $1,630.77; $615.48
652.
D) $1,529.74; $603.92
Answer: A
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Hourly Rate |
|
$53,600 |
37.5 |
52 |
$27.49 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
27.49 |
60 |
$ |
1,649.23 |
|
holiday |
$ |
27.49 |
15 |
$ |
412.31 |
Difficulty: 3 Hard
Topic: Compute Gross Pay for Different Pay Bases; Calculate
Pay Based on Hours and Fractions of Hours
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Phillippe is an inside salesperson who earns a base annual
salary of $24,000 plus a 5% commission on total sales that he makes during the
pay period. During a semimonthly period, he made $27,500 in sales. What is
Phillippe’s gross pay for the period? (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
298.
A) $2,298.07
299.
B) $2,390.38
300.
C) $2,375.00
301.
D) $2,422.50
Answer: C
Explanation:
|
Hourly Rate or Period wage |
Commissions |
Gross Earning |
|
$ 1,000.00 |
$ 1,375.00 |
$ 2,375.00 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases;
Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases; 03-03 Calculate Pay Based on Hours and Fractions of Hours
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) Clark is a piece rate worker who earns $8.25 per completed
unit. During a 40-hour workweek, Clark completed 57 units. What is Clark’s
hourly rate?
15.
A) $15.21 per hour
16.
B) $11.76 per hour
17.
C) $13.98 per hour
18.
D) $12.22 per hour
Answer: B
Explanation:
|
Pay/Unit |
# Units completed |
Gross pay |
# Hours |
Hourly rate |
|
$ 8.25 |
57 |
$ 470.25 |
40 |
$ 11.76 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) Quinn works the following hours during a one-week period:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
34 |
|
Tuesday |
7 |
56 |
|
Wednesday |
7 |
58 |
|
Thursday |
8 |
42 |
|
Friday |
8 |
2 |
Under the hundredth-hour method, how many hours has he worked?
41.
A) 41.25 hours
42.
B) 41.85 hours
43.
C) 41.53 hours
44.
D) 41.20 hours
Answer: D
Explanation:
|
Day |
Hours |
Minutes |
100th Hour |
Total |
|
Monday |
8 |
34 |
0.57 |
8.57 |
|
Tuesday |
7 |
56 |
0.93 |
7.93 |
|
Wednesday |
7 |
58 |
0.97 |
7.97 |
|
Thursday |
8 |
42 |
0.70 |
8.70 |
|
Friday |
8 |
2 |
0.03 |
8.03 |
|
Total hours |
|
|
|
41.20 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
35) Brandie is an hourly worker whose employer uses the
quarter-hour method. During a one-week period, she worked the following hours:
|
Day |
In |
Out |
In |
Out |
|
Monday |
8:03 |
12:00 |
1:03 |
5:04 |
|
Tuesday |
7:57 |
11:45 |
12:42 |
4:56 |
|
Wednesday |
8:08 |
12:15 |
1:20 |
5:03 |
|
Thursday |
8:02 |
12:28 |
1:25 |
4:58 |
|
Friday |
7:52 |
12:05 |
12:58 |
5:12 |
Using the quarter-hour method, how many hours did she work that
week?
39.
A) 39.50 hours
40.
B) 39.75 hours
41.
C) 40.00 hours
42.
D) 40.25 hours
Answer: D
Explanation:
|
|
AM |
PM |
Total |
|
Monday |
4 |
4 |
8.00 |
|
Tuesday |
3.75 |
4.25 |
8.00 |
|
Wednesday |
4 |
3.75 |
7.75 |
|
Thursday |
4.5 |
3.5 |
8.00 |
|
Friday |
4.25 |
4.25 |
8.50 |
|
Total hours |
|
|
40.25 |
Difficulty: 3 Hard
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) Brandie is an hourly worker whose employer uses the
hundredth-hour method. During a one-week period, she worked the following
hours:
|
Day |
In |
Out |
In |
Out |
|
Monday |
8:03 |
12:00 |
1:03 |
5:04 |
|
Tuesday |
7:57 |
11:45 |
12:42 |
4:56 |
|
Wednesday |
8:08 |
12:15 |
1:20 |
5:03 |
|
Thursday |
8:02 |
12:28 |
1:25 |
4:58 |
|
Friday |
7:52 |
12:05 |
12:58 |
5:12 |
Using the hundredth-hour method, how many hours did she work
that week? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
40.
A) 40.17 hours
41.
B) 40.21 hours
42.
C) 40.27 hours
43.
D) 41.26 hours
Answer: C
Explanation:
|
Day |
In |
Out |
#hrs |
In |
Out |
#hrs |
|
Monday |
8:03 |
12:00 |
3.95 |
1:03 |
5:04 |
4.02 |
|
Tuesday |
7:57 |
11:45 |
3.80 |
12:42 |
4:56 |
4.23 |
|
Wednesday |
8:08 |
12:15 |
4.12 |
1:20 |
5:03 |
3.72 |
|
Thursday |
8:02 |
12:28 |
4.43 |
1:25 |
4:58 |
3.55 |
|
Friday |
7:52 |
12:05 |
4.22 |
12:58 |
5:12 |
4.23 |
|
|
|
|
|
|
Total |
40.27 |
Difficulty: 3 Hard
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) Brendan is an hourly worker. During a week’s pay period, he
worked the following hours and minutes:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
45 |
|
Tuesday |
7 |
52 |
|
Wednesday |
8 |
0 |
|
Thursday |
9 |
36 |
|
Friday |
8 |
24 |
Using the quarter-hour method, how many total hours did Brendan
work that week?
41.
A) 41.75 hours
42.
B) 42.50 hours
43.
C) 43.25 hours
44.
D) 42.25 hours
Answer: B
Explanation:
|
Day |
Hours |
Minutes |
Total |
|
Monday |
8 |
45 |
8.75 |
|
Tuesday |
7 |
52 |
7.75 |
|
Wednesday |
8 |
0 |
8 |
|
Thursday |
9 |
36 |
9.5 |
|
Friday |
8 |
24 |
8.5 |
|
|
|
Total |
42.5 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) Brendan is an hourly worker and earns $15.25/hour. During a
week’s pay period, he worked the following hours and minutes:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
45 |
|
Tuesday |
7 |
52 |
|
Wednesday |
8 |
0 |
|
Thursday |
9 |
36 |
|
Friday |
8 |
24 |
Using the hundredth-hour method, what is Brendan’s gross pay for
the week? The employer pays overtime for all time worked in excess of 40 hours
per week. (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
670.
A) $670.00
671.
B) $649.90
672.
C) $669.86
673.
D) $650.00
Answer: C
Explanation:
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
15.25 |
40 |
$ |
610.00 |
|
OT |
$ |
22.88 |
2.6166667 |
$ |
59.86 |
|
|
|
|
|
$ |
669.86 |
|
Day |
Hours |
Minutes |
Total time |
|
Monday |
8 |
45 |
8.75 |
|
Tuesday |
7 |
52 |
7.8666667 |
|
Wednesday |
8 |
0 |
8 |
|
Thursday |
9 |
36 |
9.6 |
|
Friday |
8 |
24 |
8.4 |
|
|
|
Total |
42.6166667 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) Betsy is a salaried nonexempt worker who earns $39,500 per
year for a 40-hour workweek. During a weekly pay period, she worked the
following hours:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
22 |
|
Tuesday |
8 |
45 |
|
Wednesday |
9 |
43 |
|
Thursday |
7 |
33 |
|
Friday |
8 |
8 |
Her employer uses a hundredth-hour method to computer overtime
pay. The employer pays overtime for all time worked in excess of 40 hours per
week. What is Betsy’s gross pay for the week? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
819.
A) $819.44
820.
B) $759.62
821.
C) $799.52
822.
D) $831.30
Answer: D
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Hourly rate |
Overtime rate |
|
$39,500 |
40 |
52 |
$18.99 |
$28.49 |
|
Day |
Hours |
Minutes |
Total time |
|
Monday |
8 |
22 |
8.3666667 |
|
Tuesday |
8 |
45 |
8.75 |
|
Wednesday |
9 |
43 |
9.7166667 |
|
Thursday |
7 |
33 |
7.55 |
|
Friday |
8 |
8 |
8.1333333 |
|
|
|
Total |
42.5166667 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
18.99 |
40 |
$ |
759.62 |
|
OT |
$ |
28.49 |
2.5166667 |
$ |
71.69 |
|
|
|
|
|
$ |
831.30 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
40) Thaddeus is a salaried exempt worker who earns $57,500 per
year for a 45-hour workweek. During a biweekly pay period, he worked 105 hours.
What is his gross pay?
211.
A) $2,211.54
212.
B) $2,764.42
213.
C) $2,395.83
214.
D) $2,579.85
Answer: A
Explanation:
|
Name |
Hourly Rate or Period Wage |
Gross Earning |
|
Thaddeus |
$ 2,211.54 |
$ 2,211.54 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) Maryann is a salaried exempt worker who earns $45,000 per
year for a 35-hour workweek. During a biweekly pay period, she worked 65 hours.
What is her gross pay?
607.
A) $1,607.45
608.
B) $1,730.77
609.
C) $1,916.21
610.
D) $1,823.45
Answer: B
Explanation:
|
Name |
Hourly Rate or Period Wage |
Gross Earning |
|
Maryann |
$ 1,730.77 |
$ 1,730.77 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) Alan is an hourly worker who earns $10.50 per hour and is
paid overtime for any time over 40 hours per week. During a weekly period, he
worked the following hours:
|
Day |
In |
Out |
In |
Out |
|
Monday |
7:53 |
12:04 |
13:15 |
17:25 |
|
Tuesday |
7:42 |
11:30 |
12:35 |
16:45 |
|
Wednesday |
7:48 |
12:35 |
13:28 |
17:25 |
|
Thursday |
8:08 |
12:22 |
13:45 |
17:37 |
|
Friday |
7:35 |
12:13 |
13:15 |
16:42 |
What is his gross pay for the week using both quarter-hour and
hundredth hour methods? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
420.
A) $420.00; $439.69
421.
B) $ 435.75; $439.43
422.
C) $420.00; $429.67
423.
D) $420.00; $434.69
Answer: B
Explanation: Quarter hour:
|
Day |
In |
Out |
#hrs |
In |
Out |
#hrs |
|
Monday |
7:53 |
12:04 |
4.00 |
13:15 |
17:25 |
4.25 |
|
Tuesday |
7:42 |
11:30 |
3.75 |
12:35 |
16:45 |
4.25 |
|
Wednesday |
7:48 |
12:35 |
4.75 |
13:28 |
17:25 |
4.00 |
|
Thursday |
8:08 |
12:22 |
4.00 |
13:45 |
17:37 |
3.75 |
|
Friday |
7:35 |
12:13 |
4.75 |
13:15 |
16:42 |
3.50 |
|
|
|
|
|
|
Total |
41.00 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
10.50 |
40 |
$ |
420.00 |
|
OT |
$ |
15.75 |
1.00 |
$ |
15.75 |
|
|
|
|
|
$ |
435.75 |
Hundredth hour:
|
Day |
In |
Out |
#hrs |
In |
Out |
#hrs |
|
Monday |
7:53 |
12:04 |
4.18 |
13:15 |
17:25 |
4.17 |
|
Tuesday |
7:42 |
11:30 |
3.80 |
12:35 |
16:45 |
4.17 |
|
Wednesday |
7:48 |
12:35 |
4.78 |
13:28 |
17:25 |
3.95 |
|
Thursday |
8:08 |
12:22 |
4.23 |
13:45 |
17:37 |
3.87 |
|
Friday |
7:35 |
12:13 |
4.63 |
13:15 |
16:42 |
3.45 |
|
|
|
|
|
|
Total |
41.23 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
10.50 |
40 |
$ |
420.00 |
|
OT |
$ |
15.75 |
1.23 |
$ |
19.43 |
|
|
|
|
|
$ |
439.43 |
Difficulty: 3 Hard
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) 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:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
47 |
|
Tuesday |
8 |
22 |
|
Wednesday |
6 |
25 |
|
Thursday |
9 |
6 |
|
Friday |
7 |
58 |
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 intermediate calculations. Round your answer to 2 decimal places.)
1. A)
$1.07; Quarter-hour
2. B)
$1.07; Hundredth-hour
3. C)
$2.86; Quarter-hour
4. D)
$2.86; Hundredth-hour
Answer: D
Explanation:
|
Quarter hour pay |
Hundredth hour pay |
Difference |
|
$583.54 |
$586.40 |
$2.86 |
Quarter hour
|
Day |
Hours |
Minutes |
Total time |
|
Monday |
8 |
47 |
8.75 |
|
Tuesday |
8 |
22 |
8.25 |
|
Wednesday |
6 |
25 |
6.5 |
|
Thursday |
9 |
6 |
9 |
|
Friday |
7 |
58 |
8 |
|
|
|
Total |
40.50 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
14.32 |
40 |
$ |
572.80 |
|
OT |
$ |
21.48 |
0.50 |
$ |
10.74 |
|
|
|
|
|
$ |
583.54 |
Hundredth hour
|
Day |
Hours |
Minutes |
Total time |
|
Monday |
8 |
47 |
8.7833333 |
|
Tuesday |
8 |
22 |
8.3666667 |
|
Wednesday |
6 |
25 |
6.4166667 |
|
Thursday |
9 |
6 |
9.1 |
|
Friday |
7 |
58 |
7.9666667 |
|
|
|
Total |
40.6333333 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
14.32 |
40 |
$ |
572.80 |
|
OT |
$ |
21.48 |
0.63333 |
$ |
13.60 |
|
|
|
|
|
$ |
586.40 |
Difficulty: 3 Hard
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) The purpose of using combination pay methods is to:
1. A)
Reduce salary expenses by offering variable compensation.
2. B)
Cross-train employees in various company functions.
3. C)
Offer employees an incentive for increased performance.
4. D)
Meet minimum wage requirements and offer pay for performance.
Answer: D
Difficulty: 1 Easy
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
45) Martha is a regional supervisor who earns a base salary of
$35,000 per year plus a 1% commission on all service contracts that she sells
to existing customers. The company pays salaries on a semimonthly basis and
contract commissions on a quarterly basis. As of September 30, Martha had made
$35,950 in contract sales for the third quarter. What will be her gross pay on
her next pay date? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
458.
A) $1,458.33
459.
B) $1,817.83
460.
C) $2,053.13
461.
D) $1,705.65
Answer: B
Explanation:
|
Name |
Hourly Rate or Period wage |
Commissions |
Gross Earning |
|
Martha |
$ 1,458.33 |
$ 359.50 |
$1,817.83 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) Grainne is an inside salesperson who earns an annual salary
of $32,800 (paid biweekly) plus a commission on quarterly sales that is paid on
the first pay date on the next quarter. She receives a 1% commission for
quarterly sales totaling $0 to $25,000, a 2% commission for quarterly sales
totaling between $25,001 and $50,000, and a 3% commission for quarterly sales
totaling over $50,001. During the second quarter, Grainne’s quarterly sales
totaled $46,750. What is her gross pay for the first pay period in July? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
729.
A) $1,729.04
730.
B) $2,301.67
731.
C) $2,196.54
732.
D) $2,664.04
Answer: C
Explanation:
|
Name |
Hourly Rate or Period wage |
Commissions |
Gross Earning |
|
Grainne |
$ 1,261.54 |
$ 935.00 |
$2,196.54 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) Andre works for a bakery as a cake decorator and receives a
base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of
the retail price for any wedding cake that he decorates. His piece-rate
earnings are totaled on a monthly basis and are paid on the first pay date of the
following month. During the month of June, he decorated eight wedding cakes
with a total retail value of $2,650. What is Andre’s gross pay for the first
week in July? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
427.
A) $1,427.53
428.
B) $1,485.96
429.
C) $1,239.42
430.
D) $1,526.78
Answer: C
Explanation:
|
Name |
Hourly Rate or Period wage |
Piece-Rate |
Gross Earning |
|
Andre |
$ 576.92 |
$ 662.50 |
$1,239.42 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) Ronda is a college professor who earns an annual salary of
$55,000. She performs an additional function as a tutor in the student center,
for which she receives $21.83 per hour. During a biweekly pay period, Ronda
worked 7.5 hours in the student center. What is her gross pay for the
period? (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
115.
A) $2,115.38
116.
B) $2,291.67
117.
C) $2,455.39
118.
D) $2,279.11
Answer: D
Explanation:
|
Name |
Hourly Rate or Period wage |
Piece-Rate |
Gross Earning |
|
Ronda |
$ 2,115.38 |
$ 163.73 |
$2,279.11 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
49) Bruce is a salaried nonexempt employee who earns $42,500
annually, paid semimonthly, plus a 0.25% commission on all regional sales, paid
monthly on the first pay date of the following month. During the month of May,
the regional sales were $103,500. What was his gross pay for the first half of
June? (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
29.
A) $2,029.58
30.
B) $1,770.83
31.
C) $1,634.62
32.
D) $1,893.37
Answer: A
Explanation:
|
Name |
Hourly Rate or Period wage |
Commissions |
Gross Earning |
|
Bruce |
$ 1,770.83 |
$ 258.75 |
$2,029.58 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) Lawrin is a real-estate salesperson whose compensation is
commission-only. She earns a 3% commission on the sale price of each house that
she sells and receives 1.5% commissions at the end of each month (the broker
retains the rest per the employment agreement). During the month of July,
Lawrin sold two houses totaling $385,420. What is her gross pay for the month
of July?
620.
A) $5,620.00
621.
B) $5,781.30
622.
C) $11,562.00
623.
D) $8,623.50
Answer: B
Difficulty: 1 Easy
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
51) Alex is a salesperson who receives an annual salary of
$18,000 paid semimonthly plus commissions of 5% of the retail price of each
unit he sells which is paid on the final pay date of the month. During his
first month of employment, he sold four units for a total of $1,000 and
requested a 5% draw against his $15,000 monthly minimum sales, in accordance
with his employment agreement. How much should Alex receive in his gross pay
for the end of his first month?
800.
A) $800.00
801.
B) $1,250.00
802.
C) $1,550.00
803.
D) $1,750.00
Answer: C
Explanation:
|
Name |
Hourly Rate or Period wage |
Draw |
Commissions |
Gross Earning |
|
Alex |
$750.00 |
$750.00 |
$50.00 |
$1,550.00 |
Difficulty: 2 Medium
Topic: Create a Payroll Register
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) During his first month of employment, Micah took a draw of
5% against his minimum sales amount of $15,000 in monthly sales that must be
deducted from his pay during the first month that he reaches his minimum sales
amount. He receives $18,000 annually in base salary plus a 5% commission on his
sales. He receives his base salary on a semimonthly basis and receives his commissions
on the final pay date of each month. During his second month of employment,
Micah sold $24,000 of equipment. What is Micah’s gross pay for the end of the
second month of employment?
950.
A) $1,950.00
951.
B) $1,500.00
952.
C) $1,350.00
953.
D) $1,200.00
Answer: D
Explanation:
|
Name |
Hourly Rate or Period wage |
Draw |
Commissions |
Gross Earning |
|
Micah |
$750.00 |
$(750.00) |
$1,200.00 |
$1,200.00 |
Difficulty: 3 Hard
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) Lloyd is the CFO for a firm that uses ISOs as part of its
executive compensation plan. He receives $150,000 annually, paid semimonthly,
in base salary plus 25 shares of the firm’s stock per month. The stock is
omitted from gross pay calculations and is valued at $52.50 per share and he
may exercise his option within five years at $0.10 per share. What is Lloyd’s
gross pay for mid-October?
1. A)
$7,250
2. B)
$6,250
3. C) $7,560
4. D)
$8,250
Answer: B
Explanation: Lloyd’s ISO is not added to his gross pay
|
Name |
Hourly Rate or Period wage |
Gross Earning |
|
Lloyd |
$ 6,250.00 |
$6,250.00 |
Difficulty: 2 Medium
Topic: Apply Combination Pay Methods
Learning Objective: 03-06 Apply Combination Pay Methods
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) Aimee is a salaried nonexempt employee who earns an annual
salary of $52,500 for a 38-hour workweek, paid biweekly. The employer pays
overtime for any hours worked in excess of 38 per week. During a pay period,
she worked 86 hours. She has requested that she take compensatory time in lieu
of paid overtime. How much compensatory time should she receive, assuming that
her firm approves the compensatory time?
1. A) 10
hours
2. B)
12.5 hours
3. C) 15
hours
4. D) 20
hours
Answer: C
Explanation:
|
Hours worked |
Standard hours |
# of hours Overtime |
Comp time hours (1.5×) |
|
86 |
76 |
10 |
15 |
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
55) Naveen is a salaried nonexempt employee who earns annually
$39,500 for a 40-hour workweek that is paid semimonthly. He is occasionally
on-call for his employer. During the on-call time, Naveen is required to be
available for phone calls and must have internet access, but is otherwise able
to pursue his own interests. Company policy allows for four hours of regular
pay for each day that the employee is on-call. How much should Naveen’s gross
pay be for a pay period in which he is on-call for three days? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
873.
A) $1,873.72
874.
B) $1,721.79
875.
C) $1,645.83
876.
D) $1,747.12
Answer: A
Explanation:
|
Name |
Annual Salary |
Hourly Rate or Period wage |
Hourly rate |
On-call |
Gross Earning |
|
Naveen |
$39,500.00 |
$1,645.83 |
$18.99 |
$227.88 |
$1,873.72 |
Difficulty: 2 Medium
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) Indra is an employee who is required to be on-call at her
employer’s site once per month for eight hours. She earns a salary of $58,750
per year for a 45-hour workweek and is paid biweekly. What is Indra’s gross pay
for a pay period that includes on-call time? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
447.
A) $2,447.92
448.
B) $2,259.62
449.
C) $2,460.47
450.
D) $2,648.77
Answer: C
Explanation:
|
Name |
Hourly Rate or Period wage |
On-call |
Gross Earning |
|
Indra |
$2,259.62 |
$200.85 |
$2,460.47 |
Difficulty: 2 Medium
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) Nicholas is the driver for a company executive. He is paid
$13.50 per hour for his services and overtime only for hours worked in excess
of 40 hours per week. His actual driving time varies, depending on the needs of
the executive. Which of the following is true about Nicholas’s compensation?
1. A)
Nicholas must maintain a log of miles driven to document his activities.
2. B)
Nicholas will be compensated only for the hours during which he is driving.
3. C)
Nicholas will receive compensation for wait time when it is for the firm’s
benefit.
4. D)
Nicholas will not receive compensation for idle times when is waits for the
executive to conduct business.
Answer: C
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
58) Tetsuko is a surgical resident at a busy metropolitan
hospital. She regularly works 24-48 hour shifts as a part of her duties. What
must the employer do, according to the FLSA? (You may select more than one
answer.)
1. Give
Tetsuko additional time off after a long shift.
2. Give
Tetsuko time to sleep and deduct those hours from her pay.
3. Give
Tetsuko a minimum of 5 hours sleep time per 24 hours of the shift.
4. Give
Tetsuko appropriate meal breaks.
Answer: C, D
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
59) Arnelle is in her third month of work for her employer. She
is 18 years of age. Her working hours, computed on a quarter-hour basis,
were as follows for the current weekly pay period:
|
Day |
Hours |
Minutes |
|
Monday |
8 |
15 |
|
Tuesday |
7 |
45 |
|
Wednesday |
7 |
30 |
|
Thursday |
8 |
15 |
|
Friday |
8 |
15 |
Arnelle receives the minimum wage, according to the 1996 FLSA
Amendment. What is her gross pay for the week using actual hours?
290.
A) $290.00
291.
B) $246.50
292.
C) $145.00
293.
D) $170.00
Answer: D
Explanation:
|
Day |
Hours |
Minutes |
Total |
|
Monday |
8 |
15 |
8.25 |
|
Tuesday |
7 |
45 |
7.75 |
|
Wednesday |
7 |
30 |
7.50 |
|
Thursday |
8 |
15 |
8.25 |
|
Friday |
8 |
15 |
8.25 |
|
|
|
Total |
40.00 |
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
4.25 |
40 |
$ |
170.00 |
Difficulty: 2 Medium
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
60) Brittany is a full-time college student and is 21 years of
age. Her employer has the option to pay her less than the Federal minimum wage.
What is the minimum hourly rate that Brittany may receive?
7. A)
$7.25 per hour
8. B)
$4.25 per hour
9. C)
$6.16 per hour
10.
D) $5.80 per hour
Answer: C
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
61) Which of the following is not a class of worker that may
receive an hourly rate below the Federal minimum wage?
1. A)
Disabled employees in occupations unrelated to their disability.
2. B)
Full-time college students in agricultural occupations.
3. C) A
16 year-old employee in the first 90 days of work.
4. D) A
student learner currently enrolled in a vocational education program.
Answer: A
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
62) Dorothy is a full-time student in a medical assisting
program at a vocational education program. She works part-time for a nursing
home as a nurse’s assistant and worked 17.5 hours during the last weekly pay
period. What should Dorothy’s gross pay be for that week? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
290.
A) $290.00
291.
B) $170.00
292.
C) $147.25
293.
D) $95.16
Answer: D
Explanation: Full-time students in a vocational education
program who work in a related job may receive 75% of the Federal minimum wage.
|
Pay type |
Rate |
# Hours |
Gross pay |
||
|
Regular |
$ |
5.44 |
17.5 |
$ |
95.16 |
Difficulty: 2 Medium
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) Susan travels among client sites as a routine part of her
employment. Travel to her first customer site and from the last customer site
to her home are not compensated. Under which of the following circumstances
will she be compensated for her travel? (You
may select more than one answer.)
1. Travel
from her home to the client site at the beginning of the workday.
2. Travel
between client sites and the firm’s office.
3. Travel
to alternate sites for the firm’s meetings with multiple clients.
4. Travel
from the client site to a personal dinner engagement at the end of the workday.
Answer: B, C
Difficulty: 1 Easy
Topic: Explain Special Pay Situations
Learning Objective: 03-07 Explain Special Pay Situations
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
64) ________ are always exempt from FLSA provisions.
1. A)
Non-profit firms
2. B)
Hospitals
3. C)
Government agencies
4. D)
Nannies with annual earnings of $2,100
Answer: D
Difficulty: 2 Medium
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) The difference between the tipped employee minimum wage and
the federal minimum wage is called the ________.
1. A)
Tip allowance
2. B)
Wage credit
3. C)
Tip credit
4. D)
Wage allowance
Answer: C
Difficulty: 1 Easy
Topic: Analyze Minimum Wage Pay for Nonexempt Workers
Learning Objective: 03-01 Analyze Minimum Wage Pay for
Nonexempt Workers
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
66) A nonexempt, salaried worker who received $46,500 in annual
compensation for a 40-hour standard workweek has an hourly rate of
________. (Round
to the nearest cent.)
23.
A) $23.26
24.
B) $22.86
25.
C) $22.64
26.
D) $22.36
Answer: D
Explanation:
|
Annual salary |
Hours/Week |
Weeks/Year |
Hourly Rate |
|
$46,500 |
40 |
52 |
$22.36 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) Joanna, a salaried nonexempt employee, earns a salary of
$38,950 for a standard 37.5-hour workweek and is paid weekly. During a weekly
period, she worked 6 hours of overtime. Her gross pay for the week would
be________. (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
928.
A) $928.81
929.
B) $936.52
930.
C) $868.88
931.
D) $894.22
Answer: A
Explanation:
|
Name |
Annual Salary |
Hourly Rate or Period wage |
No. of Regular Hours |
Hourly rate |
No. of Overtime Hours |
OT Pay |
Gross Earning |
|
Joanna |
$38,950.00 |
$749.04 |
37.5 |
$19.97 |
6 |
$179.77 |
$928.81 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) Mac is a cook at a local restaurant and earns $9.15 per
hour. He occasionally serves as the crew chief, for which he receives an
additional $2.50 per hour. During a biweekly pay period, he had the following
time data:
Cook: 75 hours (including 8 hours overtime)
Crew chief: 13 hours
His gross pay for the pay period would be ________. (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
902.
A) $902.58
903.
B) $878.31
904.
C) $874.30
905.
D) $841.80
Answer: C
Explanation:
|
Position |
Wage |
Hours |
Gross |
|
|
Cook |
9.15 |
67 |
$ |
613.05 |
|
Cook-OT |
13.725 |
8 |
$ |
109.80 |
|
Crew Chief |
11.65 |
13 |
$ |
151.45 |
|
|
|
Total |
$ |
874.30 |
Difficulty: 2 Medium
Topic: Calculate Pay Based on Hours and Fractions of Hours
Learning Objective: 03-03 Calculate Pay Based on Hours and
Fractions of Hours
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) Huynh is a piece rate worker who creates custom molds for a
plastics manufacturer. During a 40-hour workweek, he created 22 molds at a
piece rate of $38.25 per mold. His hourly rate during the workweek is
________. (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
18.
A) $18.38
19.
B) $21.04
20.
C) $19.46
21.
D) $20.96
Answer: B
Explanation:
|
Pay/Unit |
# Units completed |
Gross pay |
# Hours |
Hourly rate |
|
$38.25 |
22 |
$841.50 |
40 |
$21.04 |
Difficulty: 2 Medium
Topic: Compute Gross Pay for Different Pay Bases
Learning Objective: 03-02 Compute Gross Pay for Different
Pay Bases
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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