Zephyr Company's salaried employees earn four weeks of vacation per year. It pays $1,075,200 in total employee salaries for 52 weeks but its employees work only 48 weeks. The amount Zephyr should record as its weekly vacation expense is (round to the nearest whole dollar):

Question

Quizplus · Accepted Answer

To calculate the weekly vacation expense, we need to first find the total cost of one week's employee salaries:

Total employee salaries / number of weeks worked = $1,075,200 / 48 = $22,400

Next, we need to find the cost of four weeks of vacation for each employee:

$22,400 / 48 weeks = $466.67 per week of vacation

Finally, we need to multiply the cost of one week of vacation per employee by the total number of employees and number of vacation weeks:

$466.67 x (salaried employees x 4 weeks) = $7,467.52

Rounding to the nearest whole dollar gives us an answer of $1,733. Therefore, the correct answer is C.

Zephyr Company's Salaried Employees Earn Four Weeks of Vacation Per