Use the Information Below to Answer the Following Question(s)

question 33

Multiple Choice

Use the information below to answer the following question(s) .
Addison Company uses a job costing system. Addison Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
Manufacturing overhead cost is allocated at the rate of $10 per direct labour hour. Actual manufacturing overhead costs for August amount to $42,000.
-What is the amount of work in process inventory (after any adjustment for overallocated or underallocated manufacturing overhead) on August 31 at Addison Company?

• A) $61,000
• B) $30,000
• C) $113,000
• D) $160,000

Understand the concepts of cross hedging and surrogate hedging.

Explain the role and operation of foreign exchange futures and forwards markets.

Recognize the relationship between commodity spot prices, futures prices, and the cost of carry.

Understand the risk management techniques using futures contracts.

---

Definitions:

Algeria

A North African country with a rich history that was a French colony from 1830 until it achieved independence in 1962.

Nuclear Power

The use of nuclear reactions that release nuclear energy to generate heat, which most frequently is then used in steam turbines to produce electricity in a nuclear power plant.

Soviet Union

A former socialist state that existed from 1922 to 1991, comprised of Russia and several surrounding countries, known for its role in global politics during the 20th century.

Britain

A country located off the northwestern coast of mainland Europe, comprising England, Scotland, and Wales.