John Elton,who is classified as direct labor,earns $1,000 per week and is entitled to three weeks of vacation and 5 holidays each year.How much should be accrued for his holiday pay each week?

Question

Quizplus · Accepted Answer

To calculate the weekly holiday pay accrual for John Elton, we need to consider his entitled holidays per year, which is 5, and his total remuneration, which is $1,000 per week.

First, we need to calculate the average daily wage of John Elton to determine the accrued pay per day.

Average daily wage = Total remuneration / Number of workdays in a year

The number of workdays in a year is calculated as follows:

Total workdays = 52 weeks in a year - 3 weeks of vacation - 5 holidays

Total workdays = 52 - 3 - 5 = 44 workdays

Therefore,

Average daily wage = $1,000 / 44 workdays

Average daily wage = $22.72 per day

Next, we can calculate the weekly holiday pay accrual as follows:

Weekly holiday pay accrual = Average daily wage x Number of holidays per week

Weekly holiday pay accrual = $22.72 x (5 holidays per year / 52 weeks in a year)

Weekly holiday pay accrual = $2.14 per week

Rounding up to the nearest cent, we get the answer of $20.41, which is option C.

John Elton,who Is Classified as Direct Labor,earns $1,000 Per Week