Exercise 10.4 Employees - What Do They Really Cost? (LO10-3) Big Game, Inc., is

ID: 2482348 • Letter: E

Question

Exercise 10.4 Employees - What Do They Really Cost? (LO10-3)

Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company’s annual payroll-related costs:

Compute Big Game’s total payroll-related costs for the year.

Compute the net amount of cash actually paid to employees (their take-home pay).

Express total payroll-related costs as a percentage of total wages and salaries expense.

Express total payroll-related costs as a percentage of employees’ take-home pay.

Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company’s annual payroll-related costs:

Compute Big Game’s total payroll-related costs for the year.

= 7200000 + 580000 + 250000 + 725000 + 450000 = $9,205,000

Compute the net amount of cash actually paid to employees (their take-home pay).

= 7,200,000 - 2,200,000 = 5,000,000

Express total payroll-related costs as a percentage of total wages and salaries expense.

= 9205000/7200000 = 129%

Express total payroll-related costs as a percentage of employees’ take-home pay.

= 9205000/5000000 = 184%

Compute Big Game’s total payroll-related costs for the year.

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