MBA 620 Pay Exercises
Please complete the following FLSA problems and show your work:
1) Bob works at Weld Manufacturing and he makes $20 per hour. He is a maintenance
technician and he works six 10 hour days one week and five 10 hour days the next
week.
How much should Bob be paid per two-week paycheck? What is his average hourly
wage?
Given:
Bob’s pay per hour - $20
Work – 6 * 10 hours per day per 1 week
5 * 10 hours per day per consecutive week
Sol. Two-week paycheck = $1400 + $1100 = $2,500
Average hourly pay => 110 total no. of hours => 2500/110 = $22.7
2) Jim works at Carr Automotive where he is an auto detailer. He makes $14 per hour
plus tips. He also makes an extra $8 per auto if he details more than 10 autos per week.
This week, he worked 60 hours, detailed 25 cars (don’t count the first 10 cars) and he
was given $120 in tips.
How much should Jim be paid this week? What is his average hourly wage?
Sol. 14*40 + 21*20 + 120 = 1,100
1,100 + 8*15 = $1,220 is Jim’s this week Paycheck
1,220/60 = $20.33 is his average hourly wage
3) Paula works at Argo Motors in the Accounting department. She is paid on salaried
basis and she is in a non-exempt position. Her annual salary is $55,000 and she worked
55 hours this week.
How much should she be paid this week? What is her average hourly wage for the
week?
Sol. 55,000/2080 = 26.44 * 40 + 39.60* 15 = 1057.6 + 594
= $1651.6 is Paula’s this week’s pay
= 1651.6/55 = $30.02 is her average hourly wage
4) Neil works at an automotive parts company where he makes $18 per hour and he is
on a piece rate bonus plan. If he produces more than 200 quality parts per day, he will
be paid 50 cents per unit up to a maximum of 250 units. Assume he worked 40 hours
this week and he made the following number of units this week – M = 240, Tu = 230, W
= 260, Th = 220, F = 200 (don’t pay the bonus on the first 200 units per day).
How much should he be paid this week? What is his average hourly wage?
Sol. We first calculate the normal working hour rate payments, that is $18 per hour and
he worked for 40 hours
= $18 * 40
= $720
and he will also be paid 0.5 cent per quality unit made between 200 and 250
on Monday he made 240 so he will be paid 40* 0.5 = $20
on Tuesday he made 230 so he will be paid 30* 0.5 = $15
on Wednesday he made 260 so he will be paid 60* 0.5 = $30
on Thursday he made 220 so he will be paid 20* 0.5 = $10
720 + 20 + 15 + 30 + 10
= $795 is his pay check for this week
795/40 = $19.50 is his average hourly wage.
5) Ryan is a zip line tour guide who works for a leading zip line company 6 months out
of the year (April – October). He makes $15 an hour and this week he worked 55 hours
and received $150 in tips (which were paid to the company, but that he will receive in
his paycheck).
How much money should he receive in his weekly paycheck? What is his average
hourly wage?
Ans. 55 hours * $15 = $825 + $150(Tips) = $975 is his pay check per week
975/55 = $17.72 is his average hourly wage