Identify and Briefly Explain the Legal Rules That Apply to a Commercial

question 13

Short Answer

Identify and briefly explain the legal rules that apply to a commercial relationship between a for-profit figure skating club and the skating instructors it has contractually hired for the current fiscal year. Identify the methods available to these parties for resolving disputes that may arise, including which method is the least expensive and which is recommended as a last resort and the procedure that method entails.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the production process.

Direct Labor-Hours

The total number of hours worked by employees who are directly involved in the manufacturing process.

Fixed Manufacturing Overhead

Costs in manufacturing that do not change with the level of production output, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Job-Order Costing System

A costing system that assigns costs to specific production jobs, useful for customized orders.