Fact Pattern 3-B1 (Questions B5-B7 Apply)

question 37

Multiple Choice

Fact Pattern 3-B1 (Questions B5-B7 apply)
Destiny and Enzo engage in a business transaction for the creation and baking of a cake and other pastries and desserts for Destiny's wedding dinner and reception.When a dispute arises,Destiny initiates a lawsuit against Enzo by filing a complaint.
-Refer to Fact Pattern 3-B1.If Enzo files a motion to dismiss,and the court denies it,

• A)Destiny will be given time to file an amended complaint.
• B)Destiny will have a judgment entered in her favor.
• C)Enzo will be given time to file another response.
• D)Enzo will have a judgment entered in his favor.

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Definitions:

Direct Labor Costs

The wages and benefits paid to workers who are directly involved in the manufacturing of products.

Cost Of Goods Manufactured

The total production cost of the goods completed and transferred out of the work-in-process inventory during a specific period.

Predetermined Overhead Rate

A rate calculated before the fiscal period begins, used to allocate projected overhead costs to products or job orders.

Direct Labor Cost

The total expense of employing workers to produce a product or provide a service, excluding indirect labor costs.