The Following Data Are Estimates Describing Ireland?s Economy in 2006

question 132

Multiple Choice

The following data are estimates describing Ireland?s economy in 2006 and 2007 in millions of euros, in constant prices) : $$\begin{array} { l r r } & \mathbf { 2 0 0 6 } & \mathbf { 2 0 0 7 } \\\text { Consumption } & 84,000 & 89,000 \\\text { Government expenditure } & 24,000 & 26,000 \\\text { Investment } & 48,000 & 48,000 \\\text { Exports } & 142,000 & 151,000 \\\text { Imports } & 123,000 & 128,000 \\\text { Subsidies } & 1,800 & 1,900 \\\text { Taxes } & 500 & 500\end{array}$$ Ireland?s real GDP in 2007 was million euros.

• A) 163,000
• B) 442,000
• C) 186,000
• D) 188,400

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products, calculated before the costs are actually incurred.

Casting Department

A specific section within a manufacturing facility where metal casting processes take place, such as melting and shaping metals into desired forms.

Machine-Hour

A unit of measure representing the operation of one machine for one hour, used in cost accounting to allocate expenses to products based on the time machines are used in their production.

Overhead Applied

The amount of overhead cost allocated to products or job orders based on the predetermined overhead rate, used for cost accounting purposes.