Spring, Inc

question 67

Multiple Choice

Spring, Inc. manufactures two products. It currently has 1,000 hours of direct labor and 2,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. How much of each product should Spring manufacture per month?

• A) 1,000 units of A and 2,000 units of B
• B) 1,000 units of A and 0 units of B
• C) 0 units of A and 2,000 units of B B.
• D) 1,000 units of A and 250 units of B

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Definitions:

FUTA Tax

The Federal Unemployment Tax Act tax, which is imposed on employers to fund state workforce agencies.

SUTA Tax

State Unemployment Tax Act tax, which employers pay to the state to fund unemployment benefits.

Income Tax Withholding

The process by which employers withhold a portion of employees' salaries or wages to pay directly to the government as an advance payment of income tax.

Payroll Tax Expense

Taxes that are incurred by an employer based on the wages and salaries paid to employees, including social security taxes, Medicare taxes, and unemployment taxes.