Theresa Has a Contract to Teach Eighth Grade at Washington

question 46

Multiple Choice

Theresa has a contract to teach eighth grade at Washington Middle School.She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher.The duties under the teaching contract:

• A)are nondelegable.
• B)which Theresa has attempted to delegate are personal in nature.
• C)would no longer be required of Theresa if the school district agrees to accept Stephanie's services, because a novation would occur, which would relieve Theresa of her obligation to the school district.
• D)All of these are correct.

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Definitions:

Plantwide Rate

A single overhead absorption rate used throughout an entire manufacturing plant, applying the same rate to all products regardless of the department.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on relevant allocation bases, such as labor hours or machine hours.

Budgeted Activity Rate

The estimated rate or cost of business activities based on the budget for a specific period, often used for forecasting and planning purposes.