Mr Grammarcy Has Been Having Trouble Sleeping at Night, and His

question 41

Multiple Choice

Mr. Grammarcy has been having trouble sleeping at night, and his lack of sleep is beginning to interfere with his ability to function properly during the day. He's concerned that he may lose his job in the next round of lay-offs at his company. He is also having marital problems. He tends to lay awake at night, worrying about these problems and thinking about what he can do to resolve these issues. Based on the discussion in the text, Mr. Grammarcy should understand that _____.

• A)worrying increases one's bodily arousal, which can prevent normal sleep
• B)daily hassles and concerns do not normally interfere with normal sleep, so he should look for a medical reason for his insomnia
• C)when his marital issues are resolved, his sleep pattern will return to normal, regardless of his concerns about his job
• D)sleep is a natural function that cannot be forced without medical intervention or biofeedback training
• E)sleeping pills, used according to directions, will resolve his sleep problems

Calculate predetermined overhead rates based on different bases (machine-hours, direct labor-hours, capacity).

Identify unused capacity cost and its implications on financial statements.

Analyze the effect of overhead allocation on product costs and pricing strategies.

Evaluate the impact of manufacturing overhead costs on gross margin.