Hank Earns $24

question 204

Multiple Choice

Hank earns $24.00 per hour with time-and-a-half for hours in excess of 40 per week.He worked 50 hours at his job during the first week of March 2018.Hank pays income taxes at 15% and 7.65% for OASDI and Medicare.All of his income is taxable under FICA.Determine Hank's net pay for the week.(Do not round any intermediate calculations,and round your final answer to the nearest cent.)

• A) $1122.00
• B) $1021.02
• C) $835.80
• D) $799.80

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Definitions:

Net Operating Income

Income derived from normal business operations after subtracting all operating expenses but before interest and taxes.

Absorption Costing

An accounting procedure that integrates all production-related costs, capturing direct material expenses, direct labor costs, and all overheads, variable and fixed, within the cost framework of a product.

Net Operating Income

The amount left from a company's sales revenue after subtracting the costs of running the business, excluding tax and interest expenses.

Variable Costing

A managerial accounting method that only considers variable costs as product costs, with fixed overhead costs treated as period expenses.