Jeff Was Interested in Taking Classes to Become a Certified

question 102

Multiple Choice

Jeff was interested in taking classes to become a certified yoga instructor. In order to earn the certification, he found out he would need to take 200 hours of training. He would have to be present in the training classes with a trainer for all 200 hours. The fact that he would have to attend the classes with a trainer reflects the _____ quality of services.

• A) customer contact
• B) inseparability
• C) intangibility
• D) heterogeneity
• E) perishability

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Raw Materials

Basic materials that are used in the manufacturing process to produce goods and products.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.