Answer to Question #227740 in Economics for Eld

Question

W/t Kedija, the employee of CMN Agency, government owned, has worked 10 hours, 8 hours and 12 hours, during the holidays, after mid night on working days and weekends respectively in a given month. In the same month, she has earned a regular monthly salary of 1,120 BIRR as the result of working 140 regular working hours. Determine her gross overtime earnings for the month.

Answer 1

Kedija earned 1,120/140 = 8 BIRR per hour. If she is paid extra 50% for hours worked overtime, then her gross overtime earnings for the month are: 0.5×8×(10 + 8 + 12) = 120 BIRR.