*matches pairs to respective categories*
Answer:
26.4%.
Explanation:
Net Profit:
= Saving of Labor & other Costs - Maintenance Cost of Machine - Depreciation On Machine (100,000/ 16 years)
= $40,000 - $10,000 - $6,250
= $23,750
Initial Investment:
= Cost of new Machine - Salvage value of old machine
= $100,000 - $10,000
= $90,000
Simple Rate of Return = Net Profit ÷ Initial Investments
= $23,750 ÷ $90,000
= 0.264 × 100
= 26.4%
Answer: A. Departments with more employees are allocated earlier.
Explanation:
In the sequential method, it should be noted that a company allocates the service costs one department at a time. Once the service department cost is allocated by the accountants, the department won't get any other costs from the other service departments.
The statement that is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments is that the departments with more employees are allocated earlier.
Under the sequential method, the department costs that are allocated earlier include having an accurate cost drivers, having a higher cost, or having a large number of support.
Answer:
From the information provided
Federal rate tax of earnings = 30000 × 0.6%
= 30000 × 0.006
= 180
State rate tax of earnings = 30000 × 5.4%
= 30000 × 0.054
= 1620
Medicare taxes = 2625
Social security taxes = 10500
Total payroll tax expenses = Medicare taxes + social security taxes + state rate tax on earnings + federal rate tax on earnings
= 10500 + 2625 + 180 +1620
= $ 14925
THUS,
JOURNAL ENTRY
___Accounts_______Debit ($)____Credit ($)
Payroll Tax Expense__ 14925
Social Security Payable___________ 10,500
Medicare Payable________________2625
FUTA Payable ___________________180
SUTA Payable ___________________1620
