Zennia Company provides its employees with varying amounts of vacation per year, depending on their length of employment. The estimated amount of the current year's vacation cost is $135,000. On December 31, the end of the current year, the current month's accrued vacation pay is
A) $135,000
B) $67,500
C) $0
D) $11,250

Question

Quizplus · Accepted Answer

The estimated vacation cost for the year is $135,000. To find the monthly accrued amount, divide the annual cost by 12 months ($135,000 / 12 = $11,250). Therefore, the accrued vacation pay for the current month is $11,250.

Zennia Company Provides Its Employees with Varying Amounts of Vacation