Shortly Before He Died,Walter Drafted a Will to Make Sure

question 52

Multiple Choice

Shortly before he died,Walter drafted a will to make sure that the appropriate people enjoyed Bearsclaw,the name of his cabin in the mountains.At the time of Walter's death,his brother Herman was married to Stella.Stella also owned a cabin in the mountains,which she let Herman use.As Walter knew,however,Stella intended that after she died,her cabin would pass to her cousin.Walter's will therefore said that Bearsclaw would go to his sister,Maria,until Stella died.When Stella died,Bearsclaw would go to Herman.Which of the following can be said with respect to Bearsclaw after Walter died?

• A)Herman held a reversion.
• B)Stella enjoys a life estate.
• C)Maria held a remainder.
• D)Herman held a remainder.
• E)Maria held a reversion.

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Definitions:

Overapplied

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Underapplied

A condition where allocated manufacturing overhead for a period is less than the actual overhead incurred, causing unabsorbed overhead costs.

Job-Order Costing System

A cost accounting system that assigns costs to specific batches or job orders, making it easier to track the cost of producing each item or batch.

Overapplied

Occurs when the allocated manufacturing costs exceed the actual manufacturing costs incurred.