An employee works at a restaurant and earns $12 per hour, working 46 hours in a week with overtime after 40 hours. What is the gross income for that week?

An employee works at a restaurant and earns $12 per hour, working 46 hours in a week with overtime after 40 hours. What is the gross income for that week?

• A. $552
• B. $564
• C. $588
• D. $600

Answer: (C)

Overtime pay rules: after 40 hours in a workweek, workers are paid 1.5 times their regular hourly rate for any extra hours. Here, the rate is $12 per hour and total hours are 46, so there are 6 overtime hours. Regular pay for 40 hours is 40 × $12 = $480. Overtime rate is $12 × 1.5 = $18 per hour, and for 6 hours that adds $108. Combine them: $480 + $108 = $588. The gross income for the week is $588.

Overtime pay rules: after 40 hours in a workweek, workers are paid 1.5 times their regular hourly rate for any extra hours. Here, the rate is $12 per hour and total hours are 46, so there are 6 overtime hours. Regular pay for 40 hours is 40 × $12 = $480. Overtime rate is $12 × 1.5 = $18 per hour, and for 6 hours that adds $108. Combine them: $480 + $108 = $588. The gross income for the week is $588.