Good Tire Company and Hiway Auto Service Enter into a Contract

question 36

Multiple Choice

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

• A)automatically in sales contracts.
• B)only if the buyer asks for it.
• C)only if the seller does not expressly disclaim it.
• D)only in conjunction with lease contracts,not sales contracts.

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Definitions:

Overapplied

In cost accounting, it refers to a situation where the allocated overhead for a period is more than the actual overhead incurred.

Underapplied

A situation where the assigned manufacturing overhead expenses fall short of the real overhead costs that have been spent.

Standard Labor-Hours

The predetermined amount of labor-hours expected to be required to produce a unit of product or perform a task.

Actual Output

The real production volume or amount of work done, as opposed to planned or theoretical outputs.