Carolina Curtis Offered to Clean the Windows at Rebate Retailer's

question 57

Multiple Choice

Carolina Curtis offered to clean the windows at Rebate Retailer's brick-and-mortar outlet.Carolina said she would get the windows cleaned within 48 hours.Carolina also told Rebate,"We can work on the price later." Which of the following statements is correct?​

• A)​Carolina and Rebate have formed a valid contract.
• B)​Carolina and Rebate will have formed a contract once she cleans the windows.
• C)Carolina and Rebate do not have a contract.
• D)The absence of a price does not affect the validity of an offer.

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Definitions:

Manufacturing Overhead Account

An account that tracks indirect production costs, such as utilities and rent for manufacturing facilities.

Work in Process

Inventory items that are partially completed but not yet ready for sale; represents goods in various stages of production.

Predetermined Overhead Rate

A rate calculated at the beginning of a period by dividing estimated overhead costs by an estimated activity base, such as labor hours, used to allocate overhead costs to products.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs.