Which of the Following Statements Is Correct

question 59

Multiple Choice

Which of the following statements is correct?

• A) The FUTA tax provides benefits for employees who become unemployed.
• B) The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax.
• C) The earnings base for the federal and state unemployment taxes are the same, the first $7,000 of an employee's earnings for the year.
• D) All of the above are correct.

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Definitions:

Budgeted Hours

The number of hours allocated or planned for a particular task, project, or period, usually part of a financial or operational plan.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of output under normal conditions.

Actual Production

The quantity of goods or services produced during a specific time period, as opposed to planned or projected output.

Fixed Overhead Volume Variance

Fixed Overhead Volume Variance measures the difference between the budgeted and the actual volume of production, affecting the overall fixed overheads allocated per unit.