A worker earning $20 per hour works 60 hours in week one and 30 hours in week two. Overtime pay is 1.5 times the regular rate for hours over 40 in a week. What are the gross wages for the two-week period?

A worker earning $20 per hour works 60 hours in week one and 30 hours in week two. Overtime pay is 1.5 times the regular rate for hours over 40 in a week. What are the gross wages for the two-week period?

• A. $1,900
• B. $2,000
• C. $2,400
• D. $2,600

Answer: (B)

Overtime pay applies to hours worked beyond 40 in a week at 1.5 times the regular hourly rate. In week one, the worker logs 60 hours: 40 hours at $20 = $800, plus 20 overtime hours at $20 × 1.5 = $30 per hour, which is $600. Week one total is $1,400. In week two, there are 30 hours, all at the regular rate: 30 × $20 = $600. Add the two weeks together: $1,400 + $600 = $2,000. The two-week gross wages are $2,000.

Overtime pay applies to hours worked beyond 40 in a week at 1.5 times the regular hourly rate. In week one, the worker logs 60 hours: 40 hours at $20 = $800, plus 20 overtime hours at $20 × 1.5 = $30 per hour, which is $600. Week one total is $1,400. In week two, there are 30 hours, all at the regular rate: 30 × $20 = $600. Add the two weeks together: $1,400 + $600 = $2,000. The two-week gross wages are $2,000.