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. )
A)$2,447.92
B)$2,259.62
C)$2,460.47
D)$2,648.77

Question

Quizplus · Accepted Answer

Indra's annual salary is $58,750, which is divided by 26 pay periods (biweekly) to get her regular pay per period: $58,750 / 26 = $2,259.62. Since the on-call time is part of her regular duties and she is salaried, her gross pay remains the same, $2,259.62, plus any additional compensation for the on-call hours. Assuming the on-call hours are compensated at her regular hourly rate, we calculate her hourly rate as $58,750 / (45 hours/week * 52 weeks) = $25.10/hour. For 8 on-call hours, she earns 8 * $25.10 = $200.85. Adding this to her regular pay: $2,259.62 + $200.85 = $2,460.47.

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