Summarizing factory payroll taxes. A summary of taxable factory wages of Michael Oliver Associates for the month of November 19X6 is shown below. Assume a FICA tax rate of 7 percent, a federal unemployment tax rate of .8 percent, and a net state unemployment tax rate of 5.4 percent.

Instructions 1. Compute the employer's payroll taxes to be charged to each department. Use the data to prepare the summary of factory payroll taxes for November 19X6.
2. Prepare an entry in general journal form to record the taxes. Use the account titles in your textbook.

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Department FICA Taxes Factory Supply $29,350 Wages Subject to: Federal and State Unemployment Taxes $11,640 Factory Administration 26,350 10,290 Cutting 32,780 15,340 Assembling 36,280 16,040 Finishing 34,780 19,260