Using a Volume-Based Overhead Rate Based on Machine Hours to Assign

question 78

Multiple Choice

Using a volume-based overhead rate based on machine hours to assign manufacturing overhead to a product line that uses relatively few machine hours is likely to:

• A)Overapply overhead to the product line.
• B)Underapply overhead to the product line.
• C)Understate direct labor costs.
• D)Overstate direct labor costs.
• E)Either over- or under-apply overhead to the product line depending on many other factors.

Analyze the liability implications of agency and representation in the execution of negotiable instruments.

Evaluate the impact of bankruptcy on the rights and liabilities of parties to a negotiable instrument.

Understand the legal implications of unauthorized endorsements and who is liable in such situations.

Comprehend liability and discharge in the context of negotiable instruments.