Jeffery and Cassie,who Are Married with Modified AGI of $90,000,are

question 24

Multiple Choice

Jeffery and Cassie,who are married with modified AGI of $90,000,are sending their son to his first year of college.Their total tuition and related payments during 2015 amounted to $5,500.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit for 2015 is

• A)$1,500.
• B)$2,000.
• C)$2,500.
• D)$5,000.

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Definitions:

Direct Labor-hours

A measure of the amount of time spent by workers who are directly involved in the manufacturing process.

Variable Overhead Item

Costs that vary with the level of production output, such as utilities or materials, and are not fixed over the short term.

Rate Variances

The difference between the actual rate paid for inputs and the standard rate expected, often analyzed for labor or overhead rates.

Efficiency Variances

The difference between the actual amount of an input used and the expected (or standard) amount needed, multiplied by the standard cost per unit of input.