Use This Information for Harris Company to Answer the Following

question 201

Multiple Choice

Use this information for Harris Company to answer the following questions.
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Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
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$$\begin{array} { l r l c } \text { Gross payroll } & \$ 10,000 & \text { Federal income tax withheld } & \$ 1,800 \\\text { Social security rate } & 6.0 \% & \text { Federal unemployment tax rate } & 0.8 \% \\\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%\end{array}$$ ​
-Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be

• A) $1,370
• B) $750
• C) $620
• D) $2,870

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Definitions:

Sampling Distributions

The distribution likelihood of a statistical value gathered from multiple samples from a given population.

Consistent Estimator

An attribute of an estimator indicating that as the sample size increases, the estimates it produces converge in probability to the parameter being estimated.

Sample Mean

The mean value derived from a dataset sample, utilized to predict the overall population's average.

Sampling Distribution

The probability distribution of a statistic (like a mean) derived from a large number of samples of a population.