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Ernie Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available:
What is the cost to serve for Customer Type 1?
Payroll Tax Deposits
Amounts employers set aside and send to tax authorities to cover their obligations for employee payroll taxes.
FUTA Tax
A national levy charged to employers to finance state employment services and joblessness benefits.
Self-Employment Taxes
Taxes that self-employed individuals pay, covering Social Security and Medicare taxes, based on their net earnings.
Net Earnings
The amount of income left over after all deductions, including taxes, expenses, and allowances, have been subtracted from gross earnings.
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