Grammy's Bakery Had the Following Information Before the Pay Period

question 59

Multiple Choice

Grammy's Bakery had the following information before the pay period ending June 30: Assume: Each hourly employee is paid 1-1/2 times pay rate for time worked in excess of 40 hours.
FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Kitchen Salaries Expense?

• A) Debit $12,400
• B) Credit $12,400
• C) Debit $3,000
• D) Credit $3,000

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Definitions:

Financial Measures

Quantitative indicators used to assess aspects of a company's financial performance, such as profitability, liquidity, and solvency.

Advertising Expense

Costs incurred by a business to promote its products or services through various media channels.

Proportion

A part, share, or number considered in comparative relation to a whole.

Sales

Income received from selling goods or services over a period of time.