An employer pays one and half times the hourly rate for each hour worked in excess of 8 hours. If an employe works 10 hours by what percent are wages of an 8 hour increased
(a)25% (b)32.5%
(c)37.5% (d)40%
Pick an arbitrary rate, say $10 per hour
then the overtime rate is $15 per hour
regular time = $80
10 hour day pay = $80 + $2(15) = $110
and increase of $30
so rate of increase = 30/80 = .375 = 37.5%
To find the percent increase in wages for working 10 hours compared to 8 hours, we can calculate the difference in wages between the two scenarios and then express it as a percentage of the wages for 8 hours.
Let's assume the hourly rate is $10.
For 8 hours of work, the wage would be:
8 * $10 = $80
For 10 hours of work, the wage would be:
8 * $10 (normal rate) + 2 * $10 * 1.5 (overtime rate) = $80 + $30 = $110
The increase in wages is $110 - $80 = $30.
To find the percent increase, we divide this increase by the original wage for 8 hours and multiply by 100:
Percent Increase = ($30 / $80) * 100 = 37.5%
Therefore, the wages for 10 hours are increased by 37.5% compared to 8 hours.
So, the answer is (c) 37.5%.
To find the answer, we need to calculate the difference between the wages earned for 8 hours and the wages earned for 10 hours.
Let's start by finding the wages earned for 8 hours. Since the employee works for 8 hours, they receive their hourly rate for those 8 hours.
Next, we calculate the wages earned for the additional 2 hours worked. According to the given information, the employer pays one and a half times the hourly rate for each hour worked in excess of 8 hours. So, for the additional 2 hours, the employee would receive one and a half times their hourly rate for each hour.
To calculate the percentage increase in wages for the additional 2 hours, we need to find the difference between the total wages earned for 10 hours and the total wages earned for 8 hours.
Let's assume the hourly rate is $x.
Wages for 8 hours = 8 * x
Wages for 2 additional hours = (1.5 * x) * 2
Total wages for 10 hours = Wages for 8 hours + Wages for 2 additional hours
Therefore, Total wages for 10 hours = (8 * x) + ((1.5 * x) * 2)
Now, let's calculate the percentage increase in wages:
Percentage increase = ((Total wages for 10 hours - Total wages for 8 hours) / Total wages for 8 hours) * 100
Substituting the values we found earlier:
Percentage increase = (((8 * x) + ((1.5 * x) * 2)) - (8 * x)) / (8 * x) * 100
Simplifying the equation:
Percentage increase = (4 * x) / (8 * x) * 100
Percentage increase = 50%
So, by working 10 hours instead of 8 hours, the wages increase by 50%.
However, none of the given options (a), (b), (c), or (d) match with the calculated percentage increase. Please double-check the provided options or verify the calculations.