Darlene and Devin Are Married

question 11

Short Answer

Darlene and Devin are married.Darlene earns $48,000 and Devin earns $41,000.Their adjusted gross income is $96,000.Darlene's employer provides her with a qualified pension plan,Devin's does not.What are Darlene and Devin's maximum combined IRA contribution and deduction amounts?
$\begin{array}{lll} & \text { Contribution } & \text { Deduction } \\\text { a. } & \$ 11,000 & \$ 5,000 \\\text { b. } & \$ 11,000 & \$ 6,000 \\\text { c. } & \$ 11,000 & \$ 8,000 \\\text { d. } & \$ 11,000 & \$ 10,725 \\\text { e. } & \$ 11,000 & \$ 11,000\end{array}$

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units during a specific time period for budgeting and financial control.

Journalize

The process of recording transactions in the journal of a company, detailing the financial activities.

Manufacturing Overhead Variance

The difference between the actual manufacturing overhead costs incurred and the overhead costs allocated to the production process based on a predetermined rate.

Direct Labor Hours

The cumulative working hours of employees directly engaged in the production process.