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? multiple choice $25 $100 $250

Answer 1

i’m petty sure you add them all up

Answer 2

$2,500

Explanation:

The situation states that the employees earn vacation pay at the rate of one day per month and their daily wage is $100. Also, it states that in july 25 employees qualify for one vacation day. So, in order to determine the amount of vacation benefit expense for july, you need to multiply the daily wage for the number of employees that got the benefit:

$100*25= $2,500