Refer to the Following Table When Answering
Table

question 15

Multiple Choice

Refer to the following table when answering
Table 2.4: U.S. and Eurozone Nominal GDP in 2011
$$\begin{array} { l | c } \hline & 2011 \\\hline \text { Eurozone nominal GDP (€ billions) } & € 13,144 \\\text { U.S. nominal GDP (\$ billions) } & \$ 15,100 \\\text { Dollar/euro exchange rate } & \$ 1.28 \text { /€1 } 1 \\\text { PEz } & \\& \\& \\\text { /Pus } & 0.96 \\\hline\end{array}$$
-Consider the data in Table 2.4. The value of the Eurozone nominal GDP in U.S. dollars adjusted for price differences is:

• A) $18,555 billion
• B) $9,858 billion
• C) $10,697 billion
• D) $17,525 billion
• E) $16,151 billion

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Definitions:

Applied

The method of assigning or allocating overhead costs to specific products or jobs based on a predetermined rate.

Fixed Manufacturing Overhead

Costs incurred during the production process that do not vary with the level of production, such as rent for factory buildings, salaries of plant managers, and depreciation of manufacturing equipment.

Budget Variance

The variance between what was expected to be spent or earned, according to the budget, and the real amount that was spent or received.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a specific activity base, such as labor hours or machine hours.