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Scenario 13-2 It's September and Sophia Wants to Buy Some Arts and Arts

question 93

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Scenario 13-2
It's September and Sophia wants to buy some arts and crafts supplies for an after-school program she is developing for her daughter's elementary school. In her Saturday newspaper was a flyer from Michael's, an arts and crafts retailer. As she looked through the newspaper insert, she noticed that if she purchased three or more bottles of Alene's Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought they would be useful for storing each individual child's projects. On the front page of the flyer was an ad for Funky Girls Gel Pens, something she knew her daughter would love to use. The price at Michael's was $6.99 lower than the price she had found at the other stores that carried the pens. She thought that some of the older girls might like to start a scrapbook and was pleased to find that Michael's had a scrapbook starter kit, which includes scissors, book, pages, and stickers for only $15. The items could be purchased separately for $19.99. The flyer also announced that all flag-related items left over from its Canada Day sale were reduced by 40 percent.
-Refer to the scenario. Which of the following merchandise is offered in the flyer with a seasonal discount?

Definitions:

Overhead Applied

A calculation that allocates a portion of estimated overhead costs to individual units of production based on a predetermined formula.

Overhead Applied

The portion of overhead costs assigned to a specific job or department based on a predetermined rate or method.

Activity-Based Costing

A method of accounting that assigns costs to products based on the activities they require.

Overhead Applied

The allocation of overhead costs to specific products or cost centers based on a predetermined rate or method.