Table 15-1 a Monopoly Producer of Foreign Language Translation Software Faces a Language

question 206

Multiple Choice

Table 15-1

A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1.
-Refer to Table 15-1.What is the marginal revenue from the sale of the 12th unit?

• A)$75
• B)$50
• C)$20
• D)-$5

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Definitions:

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the actual overhead expenses incurred.

Underapplied Overhead

Occurs when the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Factory Overhead Account

An accounting category that aggregates all indirect costs associated with the manufacture of goods, such as utilities, maintenance, and salaries of non-direct labor.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate overhead costs to products or services based on a certain activity base.