Barney Is a Full-Time Graduate Student at State University

question 53

Multiple Choice

Barney is a full-time graduate student at State University.He serves as a teaching assistant for which he is paid $700 per month for nine months and his $5,000 tuition is waived.The university waives tuition for all of its employees.In addition, Barney receives a $1,500 research grant to pursue his own research and studies.Barney's gross income from the above is:

• A)$0.
• B)$6,300.
• C)$11,300.
• D)$12,800.
• E)None of these.

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Definitions:

Machine-Hours

A measure of the amount of time that a machine is operated, used as a basis for allocating manufacturing overhead.

Variable Manufacturing Overhead

The portion of overhead costs that varies with production volume, including utilities and indirect labor expenses related to manufacturing.

Fixed Manufacturing Overhead

Costs in manufacturing that do not vary with the level of production output, such as salaries of managers and depreciation of factory equipment.

Machine-Hours

A metric for the amount of time a machine is operational, typically used in manufacturing processes.