Jana Has $335,000 of Earned Income in 2011

question 66

Multiple Choice

Jana has $335,000 of earned income in 2011.Calculate the amount she can contribute to a SEP.

• A) $22,500.
• B) $24,500.
• C) $49,000.
• D) $57,500.
• E) None of the above.

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Definitions:

Standard Direct Labour-Hours

The estimated amount of labor time that should be required to produce one unit of a product.

Fixed Manufacturing Overhead Rate

The rate at which fixed manufacturing overhead costs are allocated to products, typically based on labor hours or machine hours.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Applied Fixed Overhead Cost

The portion of fixed overhead costs that is allocated to the production process during a specific period.