For Many U

question 79

Multiple Choice

For many U.S.individuals and households,replacing the federal income tax with a consumption tax would not make a major change in their tax liability - the amount they would be taxed.Which of the individuals described would be least affected by replacing the income tax with a consumption tax?

• A)A person in the lowest income bracket.This person would pay little or no tax under either system.
• B)A high-income individual who saves 35 percent of this income and uses his savings to purchase stocks and bonds.
• C)A female head of family,with no husband present.
• D)A taxpayer who puts part of her savings into a 401(k)retirement plan and in an Individual Retirement Account.

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Definitions:

Labor Quantity Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Controllable Overhead Variance

Controllable overhead variance is the difference between the actual overhead costs incurred and the budgeted overhead costs that could be controlled.

Overhead Applied

The portion of overhead costs allocated to specific jobs or production activities based on a predetermined formula or rate.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs due to changes in the level of production or activity.