The Following Totals for the Month of June Were Taken

question 91

Multiple Choice

The following totals for the month of June were taken from the payroll register of Young Company:
$\begin{array}{lr}\text { Salaries expense } & \$ 15,000 \\\text { Social security and Medicare taxes withheld } & 1,125 \\\text { Income taxes withheld } & 3,000 \\\text { Retirement savings } & 500 \\\text { Salaries subject to federal and state } & \\\text { unemployment taxes of } 6.2 \text { percent } & 4,000\end{array}$
The entry to record the accrual of employer's payroll taxes would include a debit to

• A)Payroll Tax Expense for $2,498
• B)Social Security and Medicare Tax Payable for $2,250
• C)Payroll Tax Expense for $1,373
• D)Payroll Tax Expense for $1,125

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Definitions:

Activity Variance

The difference between what was expected in terms of expenses or revenues for a particular activity level and what was actually realized.

Vehicle Operating Cost

The total expense associated with keeping a vehicle running, including fuel, maintenance, insurance, and depreciation.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular expense category in a specific period.

Catering Supplies

Items such as utensils, dishes, and food ingredients required for preparing and serving food in catering services.