Question

Employees earn vacation pay at the rate of one day per month. During the month of July, 19 employees qualify for one vacation day each. Their average daily wage is $94 per day. What is the amount of vacation benefit expense to be recorded for the month of July

Answer 1

Answer:

$1,786

Explanation:

Calculation for the amount of vacation benefit expense to be recorded for the month of July

Using this formula

Vacation beneift expenses= Numbers of qualified employees ×Average daily wage

Let plug in the formula

Vacation benefit expenses =19×$94

Vacation benefit expenses =$1,786

Therefore the amount of vacation benefit expense to be recorded for the month of July will be $1,786