Sir, please help me with this question.
A production operative is paid $11.00 per hour for a basic 35 hour week. Overtime is paid at 40% above the basic rate. The operative worker worked for 38 hours in week 9. Income tax deduction was $76.40 and benefit contribution payments were:
Employer $40
Employee at 10% of gross pay
What was the net pay of the operative in week 9?
A. $311.68
B. $316.30
C. $271.68
D. $319.29
The answer is B: $316.30
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Labour Cost
I'm getting $311.68 as the answer. There must be some more detail or there's any problem in this data.
I think its a question from BPP Kit. They must have provided the answer. Kindly refer to the answer first and then tell what it is in the answer that you don't understand.
The correct ans is A. $311.68
You have to work out the Basic Pay and then the Overtime less the payments:
Basic Pay = 35 hrs x $11 = $385.00
O/T= basic pay + (40% x basic pay) x 3 hrs = ($11.00 + (40% x $11.00) = $46.20
Gross Salary= ( basic pay + overtime) = ($385.00+$46.20) = $431.20
Less Income Tax = ( $76.40)
Less Employee Contributions= 10% of gross pay = 10% x $ 431.20 = $ 43.12
Net Salary = Gross Salary - Income Tax + Employee Contributions
= $431.20 - $76.40 - $43.12
= $311.68 (A)
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