How Many Litres of Wine Can Be Held in a Wine

question 155

Multiple Choice

How many litres of wine can be held in a wine barrel whose capacity is 22.0 gal? $$( 1 \mathrm { gal } = 4 \mathrm { qt } = 3.7854 \mathrm {~L} )$$

• A)1.72 × \(10 ^ { - 4 }\)
• B)0.172
• C)83.3
• D)5.81 × \(10 ^ { 3 }\)
• E)5.81

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Definitions:

Variable Costing

A method of costing that includes only variable production costs in product costs, treating fixed manufacturing overhead as a period cost to be charged against revenue in the period incurred.

Absorption Costing

A strategy in accounting that involves incorporating costs related to manufacturing, including direct materials, direct labor, and variable and fixed overheads, into the price point of a product.

Production Cost

The total expense incurred in manufacturing a product, including materials, labor, and overhead.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead in the cost of a product.