Simila Corporation Has Provided the Following Data for Its Most

question 45

Multiple Choice

Simila Corporation has provided the following data for its most recent year of operation: Which of the following statements is true?

• A) The amount of fixed manufacturing overhead released from inventories is $459,000
• B) The amount of fixed manufacturing overhead deferred in inventories is $56,000
• C) The amount of fixed manufacturing overhead released from inventories is $56,000
• D) The amount of fixed manufacturing overhead deferred in inventories is $459,000

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Definitions:

Product Warranty Expense

The cost associated with the obligation of a company to repair or replace defective products sold to customers, recognized as a liability.

Social Security Tax Rate

The Social Security tax rate is a percentage of income that is taxed to fund the Social Security program, paid by both employees and employers.

Medicare Tax Rate

The percentage of an employee's earnings that is withheld by the employer to contribute to the U.S. Medicare program, which provides health insurance to eligible individuals.

Federal Unemployment Compensation Tax

A tax imposed on employers to fund the federal government's oversight of the state unemployment insurance programs.