When a Manufacturer of Toys Uses Its Own Fleet of Trucks

question 22

Multiple Choice

When a manufacturer of toys uses its own fleet of trucks for transporting its products to retail stores,it is using _____ carriers.

• A)contract
• B)common
• C)regional
• D)private

Identify the financial statement implications of over- or underapplied overhead.

Calculate the predetermined overhead rate and apply overhead to products.

Analyze manufacturing overhead data to make financial decisions.

Prepare summary journal entries related to raw materials and manufacturing overhead.

---

Definitions:

Real Property

Land and anything permanently attached to it, such as buildings, also known as real estate.

Execution

An action to carry into effect the directions in a court decree or judgment.

Attachment

(1) In the context of secured transactions, the process by which a security interest in the property of another becomes enforceable. (2) In the context of judicial liens, a court-ordered seizure and taking into custody of property prior to the securing of a judgment for a past-due debt.

Unsecured Creditor

A creditor who lends money without obtaining specified assets as collateral, thus facing higher risk in case of borrower's bankruptcy.