Scenario 7

question 56

Multiple Choice

Scenario 7.2 Suppose it has been recently predicted that in the year 2020, the total number of residents in the United States will be 315.5 million, the number of residents under 16 years of age will be 85 million, the number of institutionalized adults will be 17 million, the number of adults not actively looking for work will be 39 million, and the number of unemployed will be 21.5 million.
Refer to the data in Scenario 7.2.What will be the size of the labor force in the United States in the year 2020?

• A)153 million
• B)294 million
• C)174.5 million
• D)198 million
• E)315.5 million

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Definitions:

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or jobs, such as lubricants and cleaning supplies for machinery.

Production

The act of developing, expanding, producing, or enhancing products and services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a certain activity base.

Direct Materials

Raw materials that are traceable directly to the finished product in the manufacturing process.