An employee earns 12 euros per hour for 40 regular hours. Overtime of 5 hours is paid at 125 % of the hourly wage. What is the total pay?
Answer and explanation
Correct answer: C. 555 euros
- Step 1: Regular pay = 12 x 40 = 480. Step 2. Overtime pay = 12 x 1.25 x 5 = 75; total = 555 euros. Answer: 555 euros. Why not the others: 540 euros: overtime was paid at 100 % only. 600 euros: overtime was paid at 200 %. 675 euros: all hours were paid at 125 %.
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