Use the Information Below to Answer the Following Questions

question 49

Multiple Choice

Use the information below to answer the following questions.
Fact 24.3.2
The Bank of Hobbiton has chosen the following initial balance sheet:

-Refer to Fact 24.3.2.Bilbo Baggins comes to the bank and deposits a $100 bill.After Bilbo's deposit,but before any other actions occur,the total quantity of money in the economy

• A)has stayed the same, with its components unchanged.
• B)has stayed the same, with currency decreasing and deposits increasing.
• C)has fallen, with currency decreasing and deposits staying the same.
• D)has risen, with currency unchanged and deposits increasing.
• E)has fallen, with currency decreasing and deposits unchanged.

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Definitions:

Activity Cost Pool

A grouping of individual costs based on the activities that drive those costs, used in activity-based costing.

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Direct Materials Cost

The cost of raw materials that are directly used in the manufacture of a product and are easily traceable to it.

Total Overhead Applied

The total amount of manufacturing overhead costs allocated to individual jobs or products based on a predetermined overhead rate.