A Liability Suit Could Result When

question 52

Multiple Choice

A liability suit could result when

• A)lightning strikes your home.
• B)your son falls down the stairs of your home.
• C)your auto is stolen.
• D)your dog bites the neighbor.
• E)smoke from the fireplace fills your house.

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Definitions:

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to products or job orders, estimated by dividing total estimated overhead costs by an allocation base, such as direct labor hours or machine hours.

Variable Manufacturing Overhead

Costs that vary with the level of production output but are indirect in nature, such as indirect materials and utilities.

Fixed Manufacturing Overhead

Regular, fixed costs associated with operating a manufacturing facility, including costs like rent, depreciation, and property taxes.

Machine-Hours

A measure of production activity that represents the total hours machines are operating over a given period.