Congress Enacts a Statute to Outlaw a Specific Type of Anticompetitive

question 25

Multiple Choice

Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economic competition, this law is referred to as

• A) a federal trade commission act.
• B) an antitrust law.
• C) an interstate commerce act.
• D) a suppressive restraint on trade.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders, based on a related activity (e.g., machine hours or labor hours).

Predetermined Overhead Rate

A predetermined rate for allocating manufacturing overhead to products or job orders, established prior to the period by forecasting both overhead expenses and activity volumes.

Machine-Hours

An indicator of how much is produced or the level of activity, determined by the total hours machines run during the manufacturing process.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or job orders based on a specific activity base such as direct labor hours or machine hours.