Instruction 2-1 Unless Instructed Otherwise, Compute Hourly Rate and Overtime

Instruction 2-1 Unless instructed otherwise, compute hourly rate and overtime rates as follows:  
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2. If the third decimal place is 5 or more, round to the next higher cent.
3. If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Refer to Instruction 2-1 Abel works a 37 1/2 hour week at $10.75 an hour. Overtime hours are paid at 1 1/2 times the regular rate.
(a) Abel's regular weekly earnings are  ____________.
(b) Abel's overtime rate is  _____________.
(c) If Abel works 6 hours overtime during one week,  calculate Abel's total gross earnings  ____________.

Correct Answer:

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a.  (37 1/2 x $10.75) = $403.1...

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