The Republic of Udon Is One of the Largest Manufacturers

question 8

Multiple Choice

The Republic of Udon is one of the largest manufacturers of glass in the world. The primary substance required to manufacture glass is silica sand. The nation of Irza controls nearly half the world's supply of silica sand. Udon is dependent on Irza for the supply of silica sand to fulfill its glass manufacturing requirements. Udon has efficiently built healthy trading relations with Irza. In this scenario, silica sand is considered a(n) _____.

• A) end-user necessity
• B) processed requisite
• C) raw material
• D) refined matter

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Definitions:

Total Job Cost

The total expense attributed to producing a specific job, including materials, labor, and overhead costs.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual units of production based on a chosen activity base.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated in the manufacturing process.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of the production costs that do not vary with the volume of production, such as rent for the manufacturing facility, salaries of manufacturing managers, and depreciation of factory equipment.