An Employee Receives an Hourly Rate of $15,with Time and a Half

question 40

Multiple Choice

An employee receives an hourly rate of $15,with time and a half for all hours worked in excess of 40 during the week.Payroll data for the first week of the calendar year are as follows: hours worked,46; federal income tax withheld,$110; Social security tax rate,6%; and Medicare tax rate,1.5%; state unemployment compensation tax,3.4% on the first $7,000; federal unemployment compensation tax,0.8% on the first $7,000.What is the net amount to be paid to the employee? If required,round your answers to the nearest cent.

• A) $569.87
• B) $539.00
• C) $625.00
• D) $544.88

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes both variable and fixed manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates the profit generated from a company's operations, excluding taxes and interest.

Net Operating Income

The profit generated from a company's everyday business operations, excluding expenses from interest and taxes.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from gross profit.