Question

Employees earn vacation pay at the rate of one day per month. during the month of july, 32 employees qualify for one vacation day each. their average daily wage is $107 per day. what is the amount of vacation benefit expense to be recorded for the month of july?

Answer 1

We let x be the amount of vacation benefit expense that has to be recorded for the month of July.

The equation that allows us to answer this question is,

x = (32 employees) x ($107 / employees)

x = $3,424

The amount of vacation benefit expense to be recorded for the month of July is equal to $3,424.