Overtime Weighted Average Example Unit 2

Calculating overtime using the weighted average method.

[stacysufka]

In the article you included they calculated 20 hours X $20 + 20 hours X $15 +10 hours X $10 = $800; $800/50 total hours = $16 per hour

Therefore, $16 per hour is the blended rate. The premium pay for overtime is then half of $16, $8, multiplied by the 10 overtime hours for a total of $80. Total compensation would be $880 for this week. How did you factor in the premium rate of half in your example? Would it be 0.5 instead of 1.5 ?