Seth's Mother Didn't Want to Have a Climbing Wall as a Permanent

question 67

Multiple Choice

Seth's mother didn't want to have a climbing wall as a permanent feature in her backyard,but it was certainly convenient to rent one from the company that catered Seth's twelfth birthday party.The catering company created both ________ utility when it rented her the climbing wall.

• A)form and place
• B)place and creation
• C)possession and price
• D)time and place
• E)creation and possession

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Definitions:

Manufacturing Overhead Applied

The allocation of manufacturing overhead to specific jobs or product units based upon the predetermined overhead rate.

Standard Machine-Hours

The estimated amount of machine time required to produce a single unit of production under normal operating conditions.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not vary with the volume of production, such as salaries of managers and depreciation of factory equipment.

Volume Variance

The difference between the expected volume of units produced or sold and the actual volume, affecting cost allocations in budgeting.