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Read the Following Scenario and Answer the Question Below

question 29

Multiple Choice

Read the following scenario and answer the question below.
The formation of sinkholes has become a fairly common phenomenon in the state of Florida. Most sinkholes are small, but some sinkholes have led to catastrophic property damage and loss of life. One September day in 1999, folks began to notice that Lake Jackson in the panhandle region was shrinking. Within a few days, it was almost gone. A sinkhole had opened beneath the lake and drained it, along with all of the fish and alligators. Another sinkhole formed just 10 miles from Walt Disney World^®in August 2013, swallowing a 48- unit villa at Summer Bay Resort^®.
As aquifers lose water, their substrates can become weaker and less capable of supporting overlying strata and any human structures built upon them. In such cases, the land surface above may subside. Sometimes subsidence can occur locally and suddenly, in the form of sinkholes, areas where the ground gives way with little warning. Once the ground subsides, soil becomes compacted, losing the porosity that enabled it to hold water. Recharging a depleted aquifer may therefore become more difficult.
-In July 2001, the town of Spring Hill, Florida, about 45 miles north of Tampa, had 18 sinkholes appear in a single day. The largest holes were nearly 100 feet deep. This is an indication that _____________.

Definitions:

Finished Goods Inventory

The final products that are completed and ready for sale but have not yet been sold to customers.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs for a period exceed the actual overhead costs incurred.

Underapplied Manufacturing Overhead

A situation where the estimated manufacturing overhead cost is less than the actual overhead incurred during a period.

Finished Goods

Inventory that has been fully processed and is ready to be offered to purchasers.