Journalize the Entry for Hot Rod Service Using the Following

question 24

Essay

Journalize the entry for Hot Rod Service using the following data from the payroll register:
$$\begin{array} { l r } \text { Regul ar earnings } & \$ 16,370 \\\text { Overtime earnings } & 903 \\\text { Federal income tax withheld } & 2,268 \\\text { Social Security tax withheld } & 827 \\\text { Medicare tax withheld } & 194 \\\text { Pension contribution from employees } & 711 \\\text { Health insurance premiums } & 807\end{array}$$

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Definitions:

Unit Selling Price

The amount of money charged to the customer for a single unit of a product or service.

Variable Cost Concept

Costs that vary directly with the level of production output, such as raw materials and labor involved in production.

Selling Price

The price at which a product or service is offered to consumers, determined by factors such as cost, market demand, and competition.

Markup Percentage

The percentage added to the cost price of goods to cover overhead and profit, determining the selling price.