Kate's Earnings During the Month of May Were $1,200

Multiple Choice

Kate's earnings during the month of May were $1,200.Her earnings for the year prior to May were $12,300.Kate's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000.The employer's unemployment payroll tax expense for May is:

A) $10.40.
B) $26.00.
C) $0.
D) $36.40.