CASE 53O'Shea V

question 44

Multiple Choice

CASE 5.3O'Shea v.Welch (2003) involved a question of whether Welch,an employee,was acting within the scope of his employment when he struck O'Shea's car.How did the court find and why?

• A) The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a frolic of his own.
• B) The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a detour.
• C) The court found that as a matter of law the employee was acting within the scope of his employment because he was involved in only a detour, not a frolic on his own.
• D) The court found that the jury should determine whether the employee was acting within the scope of his employment during the time period at issue.

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Definitions:

Manufacturing Overhead Applied

The amount of manufacturing overhead costs allocated to each unit of product based on a predetermined overhead rate.

Overapplied

This term relates to a situation where the allocated costs in accounting exceed the actual indirect costs.

Underapplied

A situation where the allocated overhead cost is less than the actual overhead cost incurred.

Work in Process Account

An account used in accounting to track the costs associated with the production of goods that are not yet complete.