In Computing Taxable Income, an Individual Is Allowed to Deduct

question 18

True/False

In computing taxable income, an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

---

Definitions:

Direct Labor-Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process to produce a single unit.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product, including indirect materials, labor, and other expenses.