Scenario 7.2 Suppose It Has Been Recently Predicted That in the Year

question 92

Multiple Choice

Scenario 7.2
Suppose it has been recently predicted that in the year 2020, the total number of residents in the United States will be 315.5 million, the number of residents under 16 years of age will be 85 million, the number of institutionalized adults will be 17 million, the number of adults not actively looking for work will be 39 million, and the number of unemployed will be 21.5 million.
-Refer to the data in Scenario 7.2. What is the predicted unemployment rate in the United States for the year 2020?

• A) 6.8 percent
• B) 8.3 percent
• C) 11.5 percent
• D) 12.3 percent
• E) 16.5 percent

---

Definitions:

Fixed Component

A portion of a cost that does not change with the level of production or sales over the short term.

Overapplied

A scenario in which the overhead costs allocated are higher than the overhead costs that were actually incurred.

Standard Cost System

An accounting method that uses predetermined costs for valuing inventory and recognizes variances between these costs and actual costs.

Cost of Goods Sold

The primary costs involved in the production of goods a company deals in, including the expenses for materials and labor.