American Co. has 25 employees who work 8-hour days and are paid hourly. On January 1,...

Transcribed Image Text:

American Co. has 25 employees who work 8-hour days and are paid hourly. On January 1, 2017, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2017 may first be taken on January 1, 2018. Information relative to these employees is as follows: Hourly Vacation Days Used Vacation Days Earned Year Wages by Each Employee Each Employee 2017 $25.80 9. 2018 27.00 9 8 American Co. has chosen to accrue the liability for compensated absences at the current rates of pay in American Co. has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the amount of expense relative to compensated absences that should be reported on December 31, 2018? O A. $46,440. O B. $90,720. O C. $79,800. O D. $48,600. American Co. has 25 employees who work 8-hour days and are paid hourly. On January 1, 2017, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2017 may first be taken on January 1, 2018. Information relative to these employees is as follows: Hourly Vacation Days Used Vacation Days Earned Year Wages by Each Employee Each Employee 2017 $25.80 9. 2018 27.00 9 8 American Co. has chosen to accrue the liability for compensated absences at the current rates of pay in American Co. has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the amount of expense relative to compensated absences that should be reported on December 31, 2018? O A. $46,440. O B. $90,720. O C. $79,800. O D. $48,600.

Answer rating: 100% (QA)

Answers D 48600 Total Employees 25 Hours 8 hour... View the full answer