Winston Ordered Fifty 7-Inch Tablets from One Tech Solutions,a Wholesaler

question 14

Multiple Choice

Winston ordered fifty 7-inch tablets from One Tech Solutions,a wholesaler.The terms of the sale were cash on delivery.When Winston received the goods,he could see without inspection that they were fifty 9-inch tablets and not what he had ordered.Under these circumstances,_____.

• A) Winston may reject the tablets without making any payment
• B) Winston cannot reject the order because the terms of the purchase were cash on delivery
• C) Winston must accept the order but is entitled to a discount of the purchase
• D) Winston is entitled to receive the shipment without paying for it because of the seller's breach of contract

---

Definitions:

Predetermined Overhead Rate

This is the rate used to allocate manufacturing overhead to individual units of production, calculated in advance based on estimated costs and activity levels.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as salaries of supervisors and rent.

Machine-hours

A measure of production time, calculated by the number of hours a machine is operated in the production of goods.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.