2018
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PAYROLL
ACCOUNTING
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Toland
TEST 2
Student INSTRUCTOR’S COPY
Chapter 2 Date
SCORING RECORD
Section Total Points Deductions Score
A 40
B 60
Total 100
Section A—DIRECTIONS: Each of the following statements is either true or false. Unless directed otherwise
by your instructor, indicate your choice in the Answers column by writing “T” for a true answer or “F” for a false
answer. (2 points for each correct answer)
For
Answers Scoring
1. An enterprise is covered under the FLSA if there are at least two employees engaged in
4. Employers must pay employees for working overtime hours even if the overtime was not
5. Employees who regularly work less than 20 hours a week are not covered by the minimum
7. An employer may only credit up to half of a tipped employee’s minimum wage as
10. Wage differentials between sexes would be allowed if the different wage rates were
11. Blue-collar workers do not have to be paid for overtime if they have earned more than
15. Violators of the minimum wage provisions of the FLSA must reimburse the offended employ–
19. In calculating the overtime premium pay, the overtime hours are multiplied by one-half the
ATS–4 Chapter 2/Achievement Test Solutions
Section B—DIRECTIONS: Solve the following problems and record the answers in the Answers column.
Carry each hourly rate and each overtime rate to 3 decimal places and then round off to 2 decimal places. (6 points
for each correct answer)
Answers
For
Scoring
1. Diane Duke works a standard 40-hour workweek. She is paid time and one-half for all
hours over 40 in each workweek. Her regular hourly wage rate is $10.90. One week,
2. Charles Rollins earns $2,400 each month and works 35 hours each week.
(3 pts.)
3. Ken Gorman is paid $810.00 for a 37½-hour workweek. Overtime is paid at time and
$810 ÷ 37½ = $21.60/hour; [$810 + (2.5 × $21.60) + (8 × $32.40)] …………………………..
.
$
1,123.20
3.
4. Susan Tate receives an hourly wage of $11.25 for a 40-hour week of 5 days, 8 hours
daily. For Saturday work, she is paid 1½ times the regular rate. For Sunday work, she is
5. Ronald Dowd receives an annual base salary of $87,500 as a salesman in the Southern
region, which has an annual sales quota of $450,000. For all sales over this quota,
6. Charles Geiger is a salaried employee who works fluctuating workweeks. He is paid
$1,520 per workweek. This week, he worked 50 hours. Determine Geiger’s total
7. Ron Morris earns $11.80 per hour and worked 44 hours this week. In addition, he earned
8. Bob Knox is paid on a piece-rate basis. He is paid 30 cents for each unit he produces. For
overtime work, he receives in addition to his piece-rate earnings a sum equal to one-half
9. Carson Morris worked two separate jobs for Horwath Company during the week. Job A
consisted of 36 hours at $16.00 per hour; Job B entailed 14 hours at $17.50 per hour.
10. Cecil Green is a waiter who regularly receives $90 each week in tips and works 40 hours
each week. Green’s employer claims the maximum weekly tip credit that is allowed in