Big Game, Inc. is a manufacturer of hunting supplies. The following is a summary

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 $2,298,ee9 was 10 points withheld fron enployees' pay and forwarded directly to tax authorities) Payroll taxes Workers' compensation preniums Group health insurance premiuns Contributions to esployees' pension plan $6, 548,80e 580,809 250,869 25,900 458,889 eßook o. 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). Print References 1. Express total payroll-related costs as a percentage of total wages and salaries expense c-2. Express total payroll-related costs as a percentage of employees' take-home pay Round your percentage answers to the nearest whole percent.) S 8 545.000 S 4 340 000 a Total payroli-related costs b Take-home pay c-1 Total payrol-related costs as a percentage of total wages and salaries expense c-2 Total payrol-related costs as a parcentage of employees take home pay

Explanation / Answer

SOLUTION

A.

B.

C1. Total payroll-related costs as a percentage of total wages and salaries expense

= Total payroll-related costs / Wages and salaries expenses

= $8,545,000 / $6,540,000 = 131%

C2. Total payroll-related costs as a percentage of employees' take home pay

= Total payroll-related costs / take home pay

= $8,545,000 / $4,340,000 = 197%

Amount ($) Total payroll related costs:   Wages and salaries expense 6,540,000   Payroll taxes 580,000   Workers' compensation premiums 250,000   Group health insurance premiums 725,000   Contributions to employees' pension plan 450,000 Total payroll related costs 8,545,000

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