The Employee Federal and State Income Tax and Social Security

question 110

True/False

The employee federal and state income tax and Social Security tax are optional deductions under payroll withholding deductions.

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Definitions:

Direct Labour Costs

Expenses related to employees who are directly involved in the production of goods or services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs.

Direct Materials

These are raw materials that are directly traceable to the manufacturing of a product.

Direct Labour-Hours

The sum of working hours for employees actively participating in the manufacturing procedure.