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: 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 interim calculations. Round final answer to two decimal places.)

Question

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:  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 interim calculations. Round final answer to two decimal places.)

Quizplus · Accepted Answer

Using the quarter-hour method, Libby worked a total of 41.5 hours (40 regular hours + 1.5 hours of overtime).

For the regular hours, she earned 40 hours x $14.32/hour = $572.80.

For the overtime, she earned 1.5 hours x $14.32/hour x 1.25 = $26.91 (because she earns time-and-a-half for overtime).

Her total pay using the quarter-hour method is $572.80 +$26.91 = $599.71.

Using the hundredth-hour method, we need to convert Libby's hours worked to decimals.

For the regular hours, Libby worked 40 hours x 4 quarters per hour = 160 quarters. That is 160/100 = 1.6 hundredths.

For the overtime, Libby worked 1.5 hours x 4 quarters per hour = 6 quarters. That is 6/100 = 0.06 hundredths.

So, her total hours worked for the week is 1.6 hundredths + 0.06 hundredths = 1.66 hundredths.

Her total pay using the hundredth-hour method is 1.66 hundredths x $14.32/hour = $23.75.

The difference between the two methods is $599.71 - $23.75 = $2.96. Therefore, the hundredth-hour method pays Libby the greater amount by $2.96.

Libby Is an Hourly Employee Who Earns $14