Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company's

Question:

Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company's annual payroll-related costs:
Wages and salaries expense (of which $2,200,000 was withheld from
employees' pay and forwarded directly to tax authorities) . . . . . . . . . . . . . . $7,200,000
Payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580,000
Workers' compensation premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Group health insurance premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725,000
Contributions to employees' pension plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
a. Compute Big Game's total payroll-related costs for the year.
b. Compute the net amount of cash actually paid to employees (their take-home pay).
c. Express total payroll-related costs as a percentage of (1) total wages and salaries expense, and (2) employees' take-home pay. (Round computations to the nearest 1 percent.)
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078025778

17th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

Question Posted: