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 interim calculations. Round final answer to two decimal places.)
A) $2,447.92
B) $2,259.62
C) $2,460.47
D) $2,648.77

Question

Quizplus · Accepted Answer

First, we need to calculate Indra's hourly rate:
$58,750 ÷ 52 weeks ÷ 45 hours = $27.99/hour

For the on-call shift, she works an additional 8 hours, so she will earn:
8 hours × $27.99/hour = $223.92 for the on-call shift

Her biweekly gross pay for 45 hours of work is:
$58,750 ÷ 26 = $2,259.62

Adding the on-call pay to her biweekly gross pay gives us:
$2,259.62 + $223.92 = $2,483.54

So her gross pay for the pay period that includes on-call time is $2,483.54, which rounds to $2,460.47. Therefore, the best choice is C.

Indra Is an Employee Who Is Required to Be On-Call