Dwayne and Ewell Enter into a Contract for the Design

question 6

Multiple Choice

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

• A)a delegatee.
• B)an assignee.
• C)an obligee.
• D)an alien.

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Definitions:

Unit Product Cost

The total cost associated with creating one unit of product, including direct labor, direct materials, and allocated overhead.

Raw Materials Cost

The total expense incurred for materials that are used in the manufacturing process to produce goods.

Direct Labor Wage Rate

The amount of money paid to workers for each hour of labor.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the manufacturing process to create finished goods.