Guillermo and Felicia Are Married,file a Joint Return,and Have One

question 71

Multiple Choice

Guillermo and Felicia are married,file a joint return,and have one dependent child; Hannah,age 6.Guillermo has earned income of $38,000.Felicia was a full-time student for 8 months) with no income.They paid a qualified day care center $4,800.What is the amount of their child and dependent care credit for the year?

• A)$4,800.
• B)$460.
• C)$600.
• D)$0.

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Definitions:

Direct Labor-Hours

Hours worked by employees directly involved in the production process, these hours are used for calculating the cost of manufacture per product.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, indirect labor, and other indirect costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a certain activity, such as direct labor hours or machine hours.

Direct Labor-Hours

The total time spent by workers directly involved in the manufacturing process.