SweepIt Cleaning Service reported the following amounts for the week ending November 4. The total amount earned by all employees
is $2,193.40. The amount withheld for federal income tax is $263.00. Social security tax is $136.00, and Medicare tax is $31.80. Three of the employees each have $11.25 deducted for hospital insurance. The amount withheld for state income tax is $38.70. For each tax/withholding, identify if the amount will be recorded in PAYROLL or EMPLOYER’S PAYROLL TAX transaction?
The total amount earned by all employees is $2,193.40. Wages must be recorded as a payroll transaction.
The amount withheld for federal income tax is $263.00. Federal income taxes must be recorded as payroll taxes.
Social security tax is $136.00, and Medicare tax is $31.80. Social Security and Medicare must be recorded as employer's payroll taxes transactions (the employer pays them).
Three of the employees each have $11.25 deducted for hospital insurance. Health care insurance must be recorded as a payroll transaction.
The amount withheld for state income tax is $38.70. State income taxes must be recorded as payroll taxes.
Any sort of funds used In financing a firm is recorded in the Financing activities while the loans cash will be recorded in the Financing activities of the statement of cash flows as well.
<h3>What is the Financing activities of cash flows?</h3>
This part of cash flows record the financing activities such as raising money through lending or issuing a bond as well as paying back to the investors.
Therefore, both transactions will be recorded in the financing activities of cash flows.
Answer:B.dividing the cost budgeted for each activity pool by the estimated activity base for that pool.
Explanation: Product costing is a term used in Manufacturing to describe the process through which the total cost of Manufacturing a product is determined.
Activity based costing is a costing method that gives manufacturers the opportunity to cost the product by determining the cost of each activity involved in the Manufacturing process of that product.
ACTIVITY RATE IS EQUAL TO THE RATIO OF BUDGETED ACTIVITY COST OF THE COST POOL AND THE ESTIMATED OR BUDGETED ACTIVITY BASE OF THE COST POOL.
yes. at a $5 cost, he breaks even and is indifferent. he necessarily turns away business when the cost of the additional unit exceeds the income.
Explanation:
To maximize profits, a firm should continue selling until the marginal revenue product equals the marginal cost of the product. Marginal revenue product is the additional revenue from the sale of an extra cost. Marginal cost is the extra expense associated with the production of an additional unit.
Rodrigo should accept that extra business. His marginal revenue product from additional business equals the marginal cost. He will not make an accounting profit or loss but may gain a long term customer. He should decline any additional business only if the marginal cost is greater than the marginal revenue product.
