(Appendix 10A) Zotta Enterprises Uses Standard Costing and Applies Manufacturing

question 83

Multiple Choice

(Appendix 10A) Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on the basis of standard direct labor-hours (DLHs) . Budgeted and actual data relating to manufacturing overhead for last year appear below:

-The budgeted fixed manufacturing overhead cost was:

• A) $24,000
• B) $38,900
• C) $40,200
• D) $37,600

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Definitions:

Perfect Tender Rule

A legal principle in sales law requiring goods delivered under a contract to exactly meet the terms, quantities, and quality specified by the buyer.

Defective Goods

Products that are not functioning as intended or are unsafe due to manufacturing flaws, design defects, or inadequate instructions.

Constitutes Acceptance

The act or process that signals agreement to the terms of an offer, thereby creating a binding contract.

Testing

The process of evaluating a product, service, or system to determine if it meets specified requirements, or to identify differences between expected and actual results.