Question

Employees earn vacation pay at the rate of one day per month. During the month of July, 25 employees qualify for one vacation day each. Their average daily wage is $100 per day. What is the amount of vacation benefit expense to be recorded for the month of July? g

Answer 1

$ 2500

Step-by-step explanation:

Data provided:

Rate at which the employees earn vacation pay = one day per month

The number of employees qualifying for one vacation day = 25 employees

The average daily pay of the employees = $ 100 per day

Now,

the amount of vacation benefit expense to be recorded for the month of July is calculated as

= number of employees qualifying × average daily pay of the employees

on substituting the values, we get

= 25 × $ 100

or

= $ 2500