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Jlenok [28]
3 years ago
14

Example: Davidson-Getty Chemicals has 8,000 employees. Each employee earns two weeks to paid vacation per year. Vacation time no

t taken in the year earned can be carried over to subsequent years. During 2016, the employees had vacation time carryovers as follows: Employees Vacation Weeks Earned but not Taken Total Carryover Weeks 2,500 0 0 2,000 1 2,000 3,500 2 7,000 8,000 9,000 During 2016, compensation average $600 a week per employee. In 2017 Davidson-Getty paid to employees $5,700,000 for the vacation time carried over from 2016.
The salaries and wages expense for employees who took vacations in 2016 was $______________.
Business
1 answer:
Elenna [48]3 years ago
5 0

Answer:

$4,200,000

Explanation:

Employees  Vacation Weeks Earned but not Taken  Total Carryover Weeks  

2,500                  0                0  

2,000                  1                2,000  

3,500                   2                7,000  

8,000                    9,000

Total weeks/compensations to be taken and paid by/to employees in 2016

=8000 employees * 2 weeks =  16,000 weeks

=16,000 weeks * $600 = $9,600,000

Weeks Taken in 2016

=2500 employees * 2 weeks * $600 = $3,000,000

=2000 employees * 1 week   *  $600 = $1,200,000

=(2500 x 2 weeks x $600) + (2000 x 1 week x $600) =  $4,200,000

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