Which of the Following Is Correct

question 89

Multiple Choice

Which of the following is correct?

• A) If your income is $20,000 and you are paying $2,000 in taxes, your marginal tax rate is 10 percent.
• B) If your income is $20,000 and you are paying $2,000 in income taxes, the income tax you are paying is progressive.
• C) If you paid $0.39 as tax from an additional dollar you earned, your marginal tax rate is 39 percent.
• D) If your marginal tax rate falls as your income increases, the tax is progressive.
• E) If your income is $20,000 and you are paying $2,000 in income taxes, the income tax you are paying is proportional.

---

Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the actual production level, multiplied by the standard labor rate.

Direct Materials

The raw materials that are directly traceable to a finished product and are an integral part of the finished product.

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks against which to compare the actual production costs.

Direct Material

Raw materials that are directly traced and assigned to the production of a specific product.