Question

Salaries for the month are $480,000; FUTA taxes are $12,100; Employer Medical premiums are $14,200. Vacation Pay is $21,000. What is Salaries & Wages Expense for Fringe Benefits?

- $480,000
- $36,300
- $26,300
- $35,200

Answer 1

The Salaries & Wages Expense for Fringe Benefits is $432,700.

Step-by-step explanation:

The calculation of Salaries & Wages Expense for Fringe Benefits involves adding various components, including FUTA taxes, employer medical premiums, and vacation pay.

Calculation:

FUTA Taxes: $12,100

Employer Medical Premiums: $14,200

Vacation Pay: $21,000

Adding these amounts:

$12,100 + $14,200 + $21,000 = $47,300

Subtracting the total fringe benefits from the total salaries:

$480,000 - $47,300 = $432,700

Therefore, the Salaries & Wages Expense for Fringe Benefits is $432,700. However, this amount does not match any of the provided options. It seems there might be an error in the given answer choices.

In conclusion, the correct calculation for Salaries & Wages Expense for Fringe Benefits is $432,700, but none of the provided options accurately reflects this amount.