The Quota on Imported Sugar Costs U

question 48

Multiple Choice

The quota on imported sugar costs U.S.consumers more than $2 billion annually and protects very few jobs.Why does Congress maintain a sugar quota that protects only a few thousand workers while forcing millions of people to pay higher prices for sugar products?

• A)Most U.S.citizens do not buy sugar products and want to help workers in the sugar industry.
• B)Voters fear that if they oppose the sugar lobby,the lobby may oppose issues that they want Congress to support.
• C)Citizens are not as involved in social and political issues as they used to be.
• D)The per person cost of the sugar quota is too small for many people to lobby Congress to make their views known.

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Definitions:

Overapplied Overhead

This occurs when the allocated manufacturing overhead cost is more than the actual overhead costs incurred, leading to a variance.

Underapplied Overhead

The situation where the allocated overhead costs are less than the actual overhead incurred.

Proration

The method of allocating proportions of expenses or incomes across different departments, products, or periods.

Process Costing

An accounting methodology used for homogenous products, which assigns costs to each production unit based on processes or departments.