Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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