In January 2018,Professor Noe Entered into a Contract with State

question 33

Multiple Choice

In January 2018,Professor Noe entered into a contract with State University.She agreed to teach full time during the 2018-2019 academic year.Professor Noe died on May 31,2018.Her estate

• A)is obligated to find another person who will agree to teach during the academic year.
• B)is discharged from any further obligations under the contract.
• C)will be discharged from any obligations under the contract only if it can be shown that her death was unexpected.
• D)will not be discharged.If the University has to pay more in order to hire a comparable substitute professor at the last minute,then the estate will be responsible for the difference in pay.

---

Definitions:

Unused Capacity

The portion of a company's production capability or resources that is not currently being utilized to generate revenue or output.

Predetermined Overhead Rate

A rate calculated before a production period based on estimated overhead costs and activity levels, used to allocate overhead costs to products.

Capacity

The highest amount of production a business can maintain over a specific time frame under standard conditions.

Machine-Hours

A measure of production volume or activity based on the number of hours that machines are operated.