The Performance of a Contract Cannot Be Rendered Illegal by a Statute

question 10

True/False

The performance of a contract cannot be rendered illegal by a statute after the parties have already entered into the contract.

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Definitions:

Actual Overhead Cost

The real expenses incurred for overhead in a given period, which may differ from budgeted or standard costs.

Overhead Applied

This term refers to the allocation of overhead costs to specific cost objects, such as products or projects, based on a predetermined rate.

Overapplied

A situation where the allocated indirect costs exceed the actual indirect costs incurred.

Predetermined Overhead Rates

An estimated rate used to allocate manufacturing overhead to individual products or job orders, calculated at the beginning of an accounting period.