An Employee Earned $47,000 During the Year Working for an Employer.The

question 9

Multiple Choice

An employee earned $47,000 during the year working for an employer.The FICA tax for social security is 6.2%,and the FICA tax for Medicare is 1.45%.The employee's share of FICA taxes is:

• A)$681.50.
• B)$2,914.00.
• C)$3,595.50.
• D)$7,191.00.
• E)Zero,since the employee's pay exceeds the FICA limit.

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and indirect materials.

Standard Costing System

is an accounting method used to estimate the cost of production, based on standard costs for materials, labor, and overhead, for the purpose of budgeting and cost control.

Standard Machine Setups

Predetermined procedures and settings used to configure machinery for production runs, aimed at optimizing efficiency and quality.

Variable Manufacturing Overhead

Variable manufacturing overhead consists of production costs that fluctuate with the level of output, such as utilities and materials used in the production process.