The Following Data Applies to the July 15 Payroll for the Woodard

question 51

Short Answer

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)
$$\begin{array} { l r c r c c } \text { Employee Name } & \text { Pay Rate } & \text { Hours } & \text { Cumulative } & \text { Department } & \text { Federal Income } \\ & & \text { Worked } & & & \text { Tax Withheld } \\\hline\text { B. Woodard } & \$ 2,000 / \text { wk } & \text { Salaried } & \$ 98,000 & \text { Office } & \$ 779.00 \\\text { J. Thomas } & 13.00 & 51 & 40,000 & \text { Shop } & 320.00 \\\text { K. McCann } & 17.00 & 46 & 42,000 & \text { Shop } & 330.00\end{array}$$ Assume:
FICA-OASDI is 6.2% based on a limit of $117,000.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the employer's payroll tax.

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Definitions:

Machine-Hours

A measure of the total time that machines are operating in the production process, often used as a basis for allocating manufacturing overhead costs.

Markup

The additional sum included in the goods' cost price to account for overhead expenses and profit.

Manufacturing Cost

The total cost involved in making a product, including direct materials, direct labor, and manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.