Chang, an NRA, Is Employed by Fisher, Inc

question 32

Multiple Choice

Chang, an NRA, is employed by Fisher, Inc., a foreign corporation. In November, Chang spends 10 days in the United States performing consulting services for Fisher's U.S. branch. She earns $5,000 per month. A month includes 20 workdays.

• A) Chang has $2,500 U.S.-source income which is exempt from U.S. taxation, because she is in the U.S. for 90 days or less.
• B) Chang has $2,500 U.S.-source income which is exempt from U.S. taxation, because the amount paid to her is less than $3,000.
• C) Chang has $2,500 U.S.-source income, because her foreign employer has a U.S. branch.
• D) Chang has no U.S.-source income, under the commercial traveler exception.

Calculate the total cost of a job using direct materials, direct labor, and applied overhead.

Understand the process of adjusting over- or underapplied overhead at the end of a period.

Explain the concept and calculation of a predetermined overhead rate.

Describe the treatment of direct and indirect materials in job costing.

---

Definitions:

Muscle Contraction

The process where muscle fibers shorten or tighten, leading to movement or stabilization of body parts.

Intestinal Muscle

Smooth muscle found in the intestines, responsible for the movement of food along the digestive tract through peristalsis.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the smooth muscles, heart, and glands.

Somatic Motor System

A part of the nervous system that is responsible for the voluntary movement of muscles, involving motor neurons that connect the central nervous system to muscle fibers.