Larson Company has 20 employees who each earn $120 per day.If they accumulate vacation time at the rate of 1.5 vacation days for each month worked, the amount of vacation benefits that should be accrued at the end of the month is

Question

Quizplus · Accepted Answer

Each employee earns 1.5 vacation days for each month worked, which translates to 18 vacation days per year (1.5 x 12).

The cost of each vacation day is the daily wage of $120 per employee.

Therefore, the vacation benefits accrued for 20 employees in one month is:

20 employees x 18 vacation days x $120 per day = $43,200

So the amount of vacation benefits that should be accrued at the end of the month is $3,600 (which is 1/12 of $43,200). Therefore, the answer is C.

Larson Company Has 20 Employees Who Each Earn $120 Per