If 24% of Your Monthly Pay Is Withheld for Federal

question 53

Multiple Choice

If 24% of your monthly pay is withheld for federal income taxes and another 8% is withheld for Social Security, state income tax, and other miscellaneous items, leaving you with $992.50 a month in take-home pay, then the amount you earned before the deductions were removed from your check is given by the equation . Solve this equation to find your gross income to the nearest dollar.

• A)$1,310 per month
• B)$1,025 per month
• C)$1,460 per month
• D)$1,182 per month
• E)$1,577 per month

---

Definitions:

Variable Costing

A cost accounting method that includes only variable costs—costs that change with production levels—in product cost calculations.

Manufacturing Margin

The difference between the cost of manufacturing goods and the sale price, indicating the profitability of production activities.

Unsold Units

Inventory items that have not been sold by the end of a selling period, affecting inventory carrying costs and cash flow.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.