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Gail's Bakery Had the Following Information Before the Pay Period

Question 14

Multiple Choice

Gail's Bakery had the following information before the pay period ending June 30: Gail's Bakery had the following information before the pay period ending June 30:    Assume: Each hourly employee is paid 1½ times pay rate for time worked in excess of 40 hours. FICA-OASDI applied to the first $128,400 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Given the above information, what would be the amount applied to Office Employee Wage Expense? A)  Debit $565 B)  Credit $565 C)  Debit $510 D)  Credit $510
Assume: Each hourly employee is paid 1½ times pay rate for time worked in excess of 40 hours.
FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Employee Wage Expense?


A) Debit $565
B) Credit $565
C) Debit $510
D) Credit $510

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