The following Information is available for the employees of Webber Packing Company for the first week of January Year 1:Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal Income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her.Paula earns a weekly salary of $1,400. Paula's federal Income tax withholding Is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her.Vacation pay ls accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 per week for Paula.Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate Is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee.e. What is the total cost of compensation expense for the first week of January Year 1 for Webber Packing Company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ### Required Information for Webber Packing Company**The following information applies to questions related to the employees at Webber Packing Company for the first week of January, Year 1:**1. **Kayla's Earnings and Deductions:** - **Hourly Wage:** $27 per hour. - **Overtime Rate:** 1½ times her regular rate for hours over 40 per week. - **Hours Worked:** 45 hours in the first week of January. - **Federal Income Tax Withholding:** 9% of her gross pay. - **Medical Insurance:** $75 per week paid by Webber. - **Retirement Plan:** $55 per week contributed by Webber.2. **Paula's Earnings and Deductions:** - **Weekly Salary:** $1,400. - **Federal Income Tax Withholding:** 19% of her gross pay. - **Medical Insurance:** $105 per week paid by Webber. - **Retirement Plan:** $120 per week contributed by Webber.3. **Vacation Pay:** - **Kayla:** Accrued at the rate of 2 hours per week (based on the regular pay rate). - **Paula:** Accrued at $70 per week.**Assume the following tax rates:**- **Social Security Tax:** 6.0% on the first $110,000 of salaries.- **Medicare Tax:** 1.5% of total salaries.- **State Unemployment Tax:** 5.4%.- **Federal Unemployment Tax:** 0.6% of the first $7,000 of salary for each employee.**Question:**e. **What is the total cost of compensation expense for the first week of January, Year 1 for Webber Packing Company?** (Do not round intermediate calculations. Round your answer to 2 decimal places.)**Please enter your answer in the provided field.****Explanation:**In this scenario, we detail the earnings, deductions, and benefits for Kayla and Paula, employees of Webber Packing Company, for the first week of January. This includes calculations for gross pay, tax withholdings, medical insurance, and retirement plan contributions. Additionally, we provide the required vacation pay rates and relevant tax rates for Social Security, Medicare, state unemployment, and federal unemployment. Visitors to this educational page should follow these details

Answer:- Payroll and employee compensation:- The payment that an employer makes to its employees in…

Required information [The following information applies to the questions displayed below.] The following information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,400. Paula's federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee. e. What is the total cost of compensation expense for the first week of January Year 1 for Webber Packing Company? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following Information is available for the employees of Webber Packing Company for the first week of January Year 1:

Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal Income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her.
Paula earns a weekly salary of $1,400. Paula's federal Income tax withholding Is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her.
Vacation pay ls accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 per week for Paula.

Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate Is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee.

e. What is the total cost of compensation expense for the first week of January Year 1 for Webber Packing Company? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

### Required Information for Webber Packing Company

**The following information applies to questions related to the employees at Webber Packing Company for the first week of January, Year 1:**

1. **Kayla's Earnings and Deductions:**
- **Hourly Wage:** $27 per hour.
- **Overtime Rate:** 1½ times her regular rate for hours over 40 per week.
- **Hours Worked:** 45 hours in the first week of January.
- **Federal Income Tax Withholding:** 9% of her gross pay.
- **Medical Insurance:** $75 per week paid by Webber.
- **Retirement Plan:** $55 per week contributed by Webber.

2. **Paula's Earnings and Deductions:**
- **Weekly Salary:** $1,400.
- **Federal Income Tax Withholding:** 19% of her gross pay.
- **Medical Insurance:** $105 per week paid by Webber.
- **Retirement Plan:** $120 per week contributed by Webber.

3. **Vacation Pay:**
- **Kayla:** Accrued at the rate of 2 hours per week (based on the regular pay rate).
- **Paula:** Accrued at $70 per week.

**Assume the following tax rates:**
- **Social Security Tax:** 6.0% on the first $110,000 of salaries.
- **Medicare Tax:** 1.5% of total salaries.
- **State Unemployment Tax:** 5.4%.
- **Federal Unemployment Tax:** 0.6% of the first $7,000 of salary for each employee.

**Question:**

e. **What is the total cost of compensation expense for the first week of January, Year 1 for Webber Packing Company?** (Do not round intermediate calculations. Round your answer to 2 decimal places.)

**Please enter your answer in the provided field.**

**Explanation:**

In this scenario, we detail the earnings, deductions, and benefits for Kayla and Paula, employees of Webber Packing Company, for the first week of January. This includes calculations for gross pay, tax withholdings, medical insurance, and retirement plan contributions. Additionally, we provide the required vacation pay rates and relevant tax rates for Social Security, Medicare, state unemployment, and federal unemployment. Visitors to this educational page should follow these details

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