Narrative 9-2
Use the Information Below to Solve the Following

question 74

Short Answer

Narrative 9-2
Use the information below to solve the following problems:
$$\begin{array} { l l l } & \text { Tax Rate } & \text { Wage Base } \\\text { Social security } & 6.2 \% & \$ 128,400 \\\text { Medicare } & 1.45 \% & \text { no limit } \\\text { FUTA } & .6 \% & \$ 7,000 \\\text { SUTA } & 5.4 \% & \$ 7,000\end{array}$$
-Refer to Narrative in your text 9-2. Sally is the self-employed owner of Tech Consulting. Her estimated annual earnings are $104,640.00 and she expects to pay 27% of this amount in income tax. What will be her quarterly estimated tax payment for the fourth quarter?

---

Definitions:

Raw Materials

Basic materials that are used in the production process of manufacturing goods, often transformed into components or finished products.

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead.

Work-in-Process Inventory

Goods in production but not yet completed; part of a company's inventory.

Direct Labor Costs

The wages or salaries paid to employees directly involved in the production of goods or services.