Use the Information Below for Jensen Company to Answer the Questions

question 9

Multiple Choice

Use the information below for Jensen Company to answer the questions that follow.
​
$$\begin{array} { l r } \text { Direct materials used } & \$ 345,000 \\\text { Direct labor incurred } & 250,000 \\\text { Factory overhead incurred } & 400,000 \\\text { Operating expenses } & 175,000\end{array}$$
-Jensen Company's period costs are

• A) $345,000
• B) $250,000
• C) $400,000
• D) $175,000

---

Definitions:

Freedom To Farm Act

A law passed in 1996 that revamped 60 years of U.S. farm policy by ending price supports and acreage allotments for wheat, corn, barley, oats, sorghum, rye, cotton, and rice.

U.S. Farm Subsidies

Government payments and financial support to farmers in the United States, aimed at stabilizing agriculture markets and incomes.

U.S. Farm Policy

A collection of laws and regulations that aim to support the agricultural sector in the United States through various means such as subsidies, price supports, and conservation initiatives.

Overallocation

The distribution of more resources or a larger share than is sustainable or equitable in a specific context.