Which of the Following Is a Positive Statement

question 272

Multiple Choice

Which of the following is a positive statement?

• A)Given their negative impact on productivity,the government should eliminate labour unions.
• B)Taxes should be lower because then people get to keep more of what they earn,so they will work more.
• C)My economics class should last for two terms because it is my favourite class.
• D)The class average on this test should be more than 80 per cent.
• E)A 10 per cent increase in income leads to a 4 per cent increase in the consumption of beef.

Understand the treatment of manufacturing overhead in the determination of the cost of goods available for sale.

Understand how the closing out of overapplied or underapplied manufacturing overhead affects cost of goods sold.

Learn the significance of actual versus estimated direct labor-hours in overhead application.

Identify and describe the components of manufacturing costs including direct materials, direct labor, and manufacturing overhead.

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Definitions:

Underapplied Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to undercosted products.

Predetermined Overhead Rate

A calculation used in cost accounting to allocate overhead costs to products or job orders based on a set formula before the period begins.

Direct Labour-hours

The total number of labor hours spent directly on the production of goods or services.

Job-order Costing

A costing method used to track costs to individual jobs or batches, assigning direct costs and allocating indirect costs to each job.