An Employee Earned $4,300 Working for an Employer

question 148

Multiple Choice

An employee earned $4,300 working for an employer.The current rate for FICA social security is 6.2% and the FICA Medicare rate is 1.45%.The employer's total FICA payroll tax for this employee is:

• A)$62.35.
• B)$266.60.
• C)$328.95.
• D)$657.90.
• E)Zero,since the FICA tax is a deduction from an employee's pay and not an employer tax.

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Definitions:

Machine Hours

A measure of production output or operation, calculated as the total number of hours that machinery is in use.

Overapplied Overhead

A situation in managerial accounting where the allocated manufacturing overhead costs are more than the actual overhead incurred.

Underapplied Overhead

A condition where the allocated manufacturing overhead cost is less than the actual overhead cost incurred, resulting in a discrepancy needing adjustment in financial statements.

Job Order Cost Accounting

A method of accounting that collects and assigns manufacturing costs to specific jobs or batches, allowing for detailed tracking of production expenses.