One-half average rate method


Kyle Forman worked 47 hours during the week for Erickson company at two different jobs. His pay rate was $14.00 for the first 40 hours, and his pay rate was $11.80 for the other 7 hours.

Determine his gross pay for that week if the company uses the one-half average rate method.

a. Gross pay.......................................................................................$...........................

b. If priory agreement existed that overtime would be paid at the rate for the job performed after the 40th hour, the gross pay would be.....................................$.............................

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Accounting Basics: One-half average rate method
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