eBook Problem 3-7 Paymant and Distribution of Payroll Note: For this problem, use the following tax rates: FICA-Employer and employee. 8% of the first s 120.000 of earnings per employee per calendar year State unemployment-4% of the first $8,000 of earings per employee per calendar year. Federal unemployment-196 of the first $8,000 of earnings per employee per calendar year. Federal income tax withholding-10% of each employee's gross earnings, unless otherwise stated. The general ledger of Berakshire Mountain Manufacturing Inc. showed the follawing credit balances on January 15 FICA Tax Payable 3,100.00 ,937.50 93.75 775.00 Direct labor earnings amounted to $10,500 from January 16 to 31. Indirect labor was $5,700, and sales and administrative salaries for the same period amounted to $3,800. All wages are subject to FICA FUTA state unemployment taxes, and 10% income tax withholding. Round all answers and entries to the nearest cent. eBook Problem 3-7 Paymant and Distribution of Payroll Note: For this problem, use the following tax rates: FICA-Employer and employee. 8% of the first s 120.000 of earnings per employee per calendar year State unemployment-4% of the first $8,000 of earings per employee per calendar year. Federal unemployment-196 of the first $8,000 of earnings per employee per calendar year. Federal income tax withholding-10% of each employee's gross earnings, unless otherwise stated. The general ledger of Berakshire Mountain Manufacturing Inc. showed the follawing credit balances on January 15 FICA Tax Payable 3,100.00 ,937.50 93.75 775.00 Direct labor earnings amounted to $10,500 from January 16 to 31. Indirect labor was $5,700, and sales and administrative salaries for the same period amounted to $3,800. All wages are subject to FICA FUTA state unemployment taxes, and 10% income tax withholding. Round all answers and entries to the nearest cent