On April 1,Marco Bought a Sailboat from a Local Marina

question 50

True/False

On April 1,Marco bought a sailboat from a local marina.Though the boat was defective and did not turn about properly,Marco used it extensively all summer and it was no longer in the same condition as when it was bought.By the end of the summer,Marco had waived his right to revoke acceptance.

---

Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of goods, such as the cost of maintenance, heat, and light of the production facility.

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by the total estimated amount of the allocation base, applied throughout an entire plant or facility.

Machine-Hours

The total number of hours that machinery is in operation, used as a basis for allocating manufacturing overhead costs in a production environment.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.