Question

Employees earn vacation pay at the rate of one day per month. During the month of July, 28 employees qualify for one vacation day each. Their average daily wage is $103 per day. What is the amount of vacation benefit expense to be recorded for the month of July?

a) $26,250
b) $175
c) $2100
d) $63,875
e) $150

Answer 1

The answer to this question is not in the options provided.

The vacation benefit expense to be recorded for the month of July is $2,884.

Step-by-step explanation:

The amount of vacation benefit expense to be recorded is calculated by multiplying the number of employees with the number of vacation days and the average daily wage per day. This is shown below:

Vacation benefit expense = 28 employees × 1 day × $103 per day

= $2,884.

Therefore, the benefit expense to be recorded for July is $2,884.

Answer 2

$2884

Step-by-step explanation:

Given that:

• 28 employees qualify for one vacation day each
• Average daily wage is $103 per day

So he amount of vacation benefit expense to be recorded for the month of July:

= number of employees * average daily wage

= 28*$103

= $2884