Problem

Shown below is a summary of the annual payroll data of Rose Co.: Wages and sala...

Shown below is a summary of the annual payroll data of Rose Co.:

Wages and salaries expense (gross pay)1

 

$2,250,000

Amounts withheld form employees’ pay:

 

 

         Income taxes

$170,000

 

         Social Security and Medicare

$150,000

320,000

Payroll taxes expense:

 

 

         Social Security and Medicare

$150,000

 

         Unemployment taxes

   58,000

208,000

Workers’ compensation premiums

 

130,000

Group health insurance premiums (paid by employer)

 

252,000

Contributions to employees’ pension plan (paid by employer and fully funded)

 

 

140,000

Cost of other postretirement benefits:

 

 

         Funded

$90,000

 

         Unfunded

120,000

210,000

 

 

 

      

Refer to the above data. Compute the company’s cash outlays during the year for payroll-related costs.  Assume short-term obligations such as insurance premiums and payroll taxes have been paid.

a $2,750,000. b $3,070,000. c $1,930,000.  d $3,510,000.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 10