T Makes a Written Offer to a to Lease Certain

question 12

Multiple Choice

T makes a written offer to A to lease certain property to P, which A accepts on behalf of P.A did not have actual authority to accept the offer on behalf of P.T withdraws the offer.P then ratifies the A's acceptance.Does T have an agreement with P?

• A)Yes.The ratification will operate retrospectively.
• B)No.Ratification does not operate retrospectively.
• C)Yes.At the time of acceptance A had actual authority.
• D)No.At the time of acceptance A did not have implied authority.

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Definitions:

Manufacturing Overhead

includes all manufacturing costs that are not directly related to the production of goods, such as factory rent, utilities, and maintenance expenses.

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the actual costs are known, based on estimated costs.

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.