Which of the Following Is the Best Example of a Basic-Level

question 36

Multiple Choice

Which of the following is the best example of a basic-level category?

• A) Of the words wingtips, shoes, flip-flops; flip-flops is a basic-level category.
• B) Of the words shoes, shirts, wardrobe; wardrobe is a basic-level category.
• C) Of the words dog, terrier, and mammal; dog is a basic-level category.
• D) Of the words lion, tiger, and mammal; mammal is a basic-level category.

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Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of the accounting period to allocate overhead costs to products or services, based on estimated costs and activity levels.

Direct Labor-Hours

The cumulative number of hours put in by workers who are directly engaged in producing goods or delivering a service.

Manufacturing Overhead

Costs related to the production environment that cannot be directly tied to the finished product, such as maintenance expenses, and are necessary for the manufacturing process.

Underapplied Manufacturing Overhead

A scenario in which the overhead costs assigned to manufacturing are lower than the overhead expenses that were actually spent.