The commission is 85 on all sales up to 50000 above the


Question 1: John Porter is an hourly employee of Motter Company located in New York city. This week, Porter had to travel to the company's regional office in Albany. He left Sunday at noon and arrived in Albany at 3:00 P.M. During the week, he worked his normal 40 hours in Albany office ( Monday through Friday - 9 A.M. to 5 P.M.). In addition, he attended the company's 4-hour work training session on Wednesday evening. Porter's hourly rate of pay is 14.80 per hour.

a. Porter's overtime for the week are

b. Porter's total earnings for the week are

Question 2: 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

Question 3: Wendy Epstein, a sales representative, earns an annual salary of $29,500 and receives a commission on that portion of her annual sales that exceeds 150,000.

The commission is 8.5% on all sales up to $50,000 above the quota. Beyond tha amount, she receives a commission of 10%. Her total sales for the past year were $295,000.

Compute:

a. The regular annual salary

b. The commission

c. The total annual earnings

Question 4: During the first week in November, Erin Mills worked 45 1/2 hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.35 a unit. Mills is paid overtime according to the FLSA ruling for overtime work under a piece-rate system.

Compute:

a. The piecework earnings

b. The regular hourly rate

c. The overtime earnings

d. The total earnings

Question 5: Jill Connor is employed as a slesperson in the men's department of Fashion Line. In addition to her weekly base salary of 340, Conner is paid a commission of 2% on her total net sales for the week (total gross sales less any customer returns). During the past week, to promote the sale of its fine cashmere sweaters, Fashion Line agreed to pay Connor an additional PM (push money) of 2% of the total net sales of cashmere sweaters. Connor's weekly sales tally is given below.

Item Gross Sales Customer Returns

Regular sweaters.................................................$400 $48

Cashmere sweaters...............................................995 75

Ties..........................................................................190 0

Dress shirts..............................................................445 39

Sports shirs..............................................................185 25

Compute Connor's total weekly earnings, showing her

(a) weekly base salary, (b) commission, (c) PM, and (d) total weekly earnings.

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Accounting Basics: The commission is 85 on all sales up to 50000 above the
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