A Check Is Drawn "Payable to Tami Thomas,M

question 3

Essay

A check is drawn "payable to Tami Thomas,M.D.,in trust for Cathy Wilson." Dr.Thomas indorses the check to a computer store in payment for a computer that she personally purchased.The computer store as indorsee has not adhered to the instructions on the check.Who is the computer store liable to and why?

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to each unit of production, based on estimated or budgeted overhead costs and activity.

Machine-Hours

A measure of production output or activity level based on the total hours machines are operating.

Total Manufacturing Cost

The cumulative expense of producing goods, including labor, materials, and overhead costs.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.