Use the Fact Situation in Q30 to Answer the Related

question 88

Multiple Choice

Use the fact situation in Q30 to answer the related question that follows. Using the fact situation above,assume that shortly after signing the guarantee,Mary leaves John so that he can no longer abuse her and decides that she really should not have to guarantee John's loan.If Mary acts quickly by bringing a lawsuit against the bank,Mary may succeed because

• A)the guarantee is unenforceable.
• B)the guarantee is void.
• C)the guarantee is voidable at both her option and the bank's option.
• D)the guarantee is voidable if Mary acts immediately to repudiate it.
• E)all of the above

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include expenses such as indirect materials, utilities, and overtime labor.

Raw Materials

Primary substances or components that are converted through the manufacturing process into a finished product.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected quantity, based on standard costs.

Direct Labor-Hours

The gross hours worked by personnel directly implicated in production operations.