When Myrtle Comes Home from Work One Evening,she Finds That

question 35

Multiple Choice

When Myrtle comes home from work one evening,she finds that her yard has been mowed and trimmed.Later,a man comes to collect for the yard work done.Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work.Which of the following answers is most accurate?

• A)This is an implied,unilateral contract and she must pay the price requested by the man.
• B)This is an express,voidable contract that either party may avoid.
• C)The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.
• D)Myrtle would not have to pay for the yard work.

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Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include items such as utility expenses and raw materials.

Direct Labor-Hours

Total time spent by staff members who are directly part of the manufacturing operations.

Fixed Manufacturing Overhead

Fixed manufacturing overhead includes regular, consistent costs involved in manufacturing that do not vary with the level of production, such as salaries of managers and factory rent.