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Suppose a technican who assembles Honda cars earns $16 per hour

Accounting Nov 09, 2020

Suppose a technican who assembles Honda cars earns $16 per hour. The technican works 48 hours during a week instead of the scheduled time of 40 hours. The overtime pay scale is two times, or 200 per cent of the regular wage.

 

The overtime premium amount is:

Select one:

a. $256

b. $128

c. $384

d. non of the above

Expert Solution

Computation of Overtime Premium Amount:

Normal wage rate = $16 per hour

Overtime Premium Wage Rate = 200%

Therefore, overtime wage rate = 200% * $16 = $32

Number of overtime hours worked = 48 - 40 = 8 hours

Overtime premium amount = 8 hours * $32 = $256

 

So, the correct option is A "$256".

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