Florida State Business and Finance Overtime Calculations

Question 1

1. Usually, overtime starts after ____________ of regular paid work and is paid at ____________ times the regular rate.

A. 30, one and a quarter
B. 40, one and a quarter
C. 30, two
D. 40, one and a half

Answer 1

1. D 5-15 Florida Contractor’s Manual

Question 2

2. Linda is paid an hourly rate of $12.00. If she works 48 hours in a week, what is her gross pay?

A. $608.00
B. $624.00
C. $662.00
D. $689.00

Answer 2

2. B 5-21 Florida Contractor’s Manual
   Regular Pay Rate = $12 per hour
   40 Hours at Regular Rate: 40 x $12 = $480.00 Overtime Rate: $12.00 x 1.5 = $18.00
   Overtime Rate x Overtime Hours = Gross Overtime Pay Gross Overtime Pay: 8 x $18.00 = $144.00
   Regular Pay + Overtime Pay = Total Gross Pay
   Total Gross Pay: $480.00 + $144.00 = $624.00

Question 3

3. Robert is paid $10.00 per hour. He worked four weeks as follows:

                   Week 1: 4 hours
                   Week 2: 10 hours
                   Week 3: 10 hours
                   Week 4: 42 hours

What is Robert’s total gross pay for the four weeks?

A. $600.00
B. $610.00
C. $640.00
D. $670.00

Answer 3

3. D 5-20, 5-21 Florida Contractor’s Manual
   Regular Pay Rate = $10 per hour
   Each week stands alone for overtime, regardless of how payment is made. Week 1: $10.00 x 4 = $40.00
   Week 2: $10.00 x 10 = $100.00 Week 3: $10.00 x 10 = $100.00
   Week 4: $10.00 x 40 = $400.00 regular rate paid Overtime rate: $10 x 1.5 = $15.00
   Week 4: $15.00 x 2 = $30
   Week 4: $400.00 + $30 = $430.00
   Total Monthly Pay: $40.00 + $100.00 + $100.00 + $430.00 = $670.00

Question 4

4. Joan works the following schedule each week: Monday through Friday, 9:00 a.m. to 4:00 p.m. with a half hour off for lunch. She is paid a gross salary of $700.00 per week for that. What is her gross pay be if she works an extra seven and a half hours?

A. $814.54
B. $829.24
C. $861.55
D. $944.06

Answer 4

4. C 5-22 Florida Contractor’s Manual
   9:00 - 4:00 is 7 hours per day
   Subtract a half hour for lunch = 6.5 hours per day Hours worked per week: 6.5 x 5 = 32.5
   Regular hourly rate is gross pay divided by weekly hours: $700 ÷ 32.5 = $21.54 Extra hours times
   hourly rate equals extra regular pay: 7.5 x $21.54 = $161.55 Add salary and extra regular pay:
   $700.00 + $161.55 = $861.55
   Note: There is no overtime because there were 40 total hours worked

Question 5

5. In the above question, what is Joan’s total gross pay if she works 50 hours this week?

A. $990.79
B. $1,018.97
C. $1,101.15
D. $1,184.65

Answer 5

5. D 5-20, 5-21 Florida Contractor’s Manual
   9:00 - 4:00 is 7 hours per day
   Subtract a half hour for lunch = 6.5 hours per day Hours worked per week: 6.5 x 5 = 32.5
   Regular hourly rate is gross pay divided by weekly hours: $700 ÷ 32.5 = $21.54 The first extra 7.5
   hours are at the regular rate: 32.5 + 7.5 = 40 hours
   Extra hours times hourly rate equals extra regular pay: 7.5 x $21.54 = $161.55 There are 10
   overtime hours (over 40 hours) paid at the overtime rate.
   Overtime is hourly rate is 1.5 times the regular rate: $21.54 x 1.5 = $32.31 Total overtime to be
   paid is: 10 hours x $32.31= $323.10
   Add regular extra pay to overtime extra pay to regular pay:
   $161.55 + 323.10 + $700.00 = $1,184.65

Question 6

6. Javier is paid $10.00 per hour on a bi-weekly basis. In week one he works 30 hours, in week two he works 44 hours. What is his gross pay for the two-week period?

A. $700
B. $740
C. $760
D. $820

Answer 6

6. C. 5-20, 5-21 Florida Contractor’s Manual
   Week 1: $10 x 30 = $300 (30 hours at regular rate) Week 2: $10 x 40 = $400 (40 hours at regular
   rate)
   Week 2: $15 x 4 = $60 (4 hours at overtime rate at ‘time and a half’) Total pay: $300 + $400 + $60
   = $760.00
   Each week stands alone, even when paid bi-weekly

Question 7

7. Steven is paid $500 dollars a week for a fluctuating work week. This week, he worked 50 hours. What is his gross pay for the week?

A. $500
B. $550
C. $578
D. $616

Answer 7

7. B 5-23 Florida Contractor’s Manual
   For fluctuating week rate, hourly rate = Flux salary ÷ ALL hours worked
   $500 ÷ 50 = $10.00
   Overtime rate = rate divided by two
   $10 ÷ 2 = $5.00
   Overtime pay = overtime hours x overtime rate
   $5.00 x 10 = $50.00
   Add regular pay to overtime pay for total gross pay
   $500.00 + $50.00 = $550.00
   Note: Without fluctuating week rules, pay would have been 10 hours OT x rate of
   $12.50/hour. This rate is meant for employees who will also receive $500 on weeks of less than 40
   hours.
   Note: The $5.00 rate paid for overtime is not a minimum wage violation because it is added on top
   of the 50 hours already paid (although at a lower rate
   than ‘normal’ overtime)

Question 8

8. John makes widgets at the factory. John makes 8 widgets per hour. He is paid $1.00 per widget. Last week, he made 350 widgets. What is John’s gross pay from last week?

A. $320.00
B. $350.00
C. $365.00
D. $380.00

Answer 8

8. C 5-22 Florida Contractor’s Manual
   This is known as Piece Work.
   First, did John make 350 widgets in 40 hours? 8 widgets per hour can be made. 8 x 40 = 320
   What about the other 30 widgets? He HAD to work overtime to make them.
   In the 40 hours it took to make the 320 widgets, what is John’s base hourly rate? He is paid $1.00
   per widget, makes 8 widgets per hour, so base rate is $8.00/hour. For the first 40 hours, he made
   $320.00
   40 x $8.00 = $320.00
   For the other 30 widgets, how long did John have to work? He makes 8 widgets per hour
   30 ÷ 8 = 3.75.
   3.75 hours is the amount of overtime he worked to make the extra 30 widgets. Overtime is calculated
   at 1.5 times base rate, also known as ‘time and a half’.
   1.5 x $8.00 = $12.00
   John worked 3.75 hours of overtime at $12.00 per hour
   3.75 x $12.00 = $45.00
   To calculate Total Gross Pay:
   $320.00 + $45.00 = $365.00
   Note: Even though it is clearly stated that John is paid $1.00 per widget, overtime
   is a priority that must be applied, even in ‘Piece Work’.

Question 9

9. Employee Clara has a scheduled workweek of 40 hours and is paid $3,000 per month. What is her regular hourly rate?

A. $17.31
B. $18.15
C. $18.73
D. $19.08

Answer 9

9. A 5-23 Florida Contractor’s Manual
   To convert monthly to weekly, multiply by 12 and divide by 52. To get regular hourly rate, divide
   that result by 40.
   $3,000 x 12 = $36,000
   $36,000 ÷ 52 = $692.31
   $692.31 ÷ 40 = $17.31

Question 10

10. Three hourly employees worked and were paid as follows for the week:

                             Hours                      Regular Hourly Rate Ms. Green              40                                      $14.00 Mr. Tan                   45                                      $12.00 Ms. Gray                 38                                      $14.00

What is the total gross pay for all three employees?

A. $1,617
B. $1,662
C. $1,698
D. $1,721

Answer 10

10. B 5-21 Florida Contractor’s Manual
    Green: 40 x $14.00 = $560 Tan: 40 x $12.00 = $480
    Tan Overtime: $12.00 x 1.5 = $18.00
    5 hours x $18.00 = $90 Gray: 38 x $14.00 = $532
    $560 + $480 + $90 + $532 = $1,662