A factory worker earns $500 per week and will receive a $2,000 bonus at year-end,a 2-week paid vacation,and 5 paid holidays.The combined amount of the accruals for bonus,vacation,and holiday pay in the weekly payroll would be:
A)$20.00.
B)$70.00.
C)$40.00.
D)None of the above.

Question

Quizplus · Accepted Answer

The worker earns $500 per week, so their bi-weekly pay would be $1,000.

The bonus they will receive at year-end is $2,000, which is not included in the bi-weekly pay, so we need to divide this by the number of pay periods in the year. Assuming they are paid bi-weekly, this would be 26 pay periods, so the bonus accrual per pay period would be $2,000/26 = $76.92.

The worker will also receive 2 weeks of paid vacation, which works out to 10 working days. Since they already receive 5 paid holidays, this means they will receive a total of 15 paid days off during the year.

So we need to divide the value of these days off (15/260) by the bi-weekly pay of $1,000. This gives us an accrual rate of $57.69.

Adding the bonus and vacation accruals together, we get $76.92 + $57.69 = $134.61.

Therefore, the combined amount of the accruals for bonus, vacation, and holiday pay in the weekly payroll would be $134.61/2 = $67.31, which rounds up to $70.00.

A Factory Worker Earns $500 Per Week and Will Receive