Based on Bluto's Conduct,Cass Reasonably Believes That Dee Has the Authority

question 37

Multiple Choice

Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto

• A)can demand that Cass make a repayment directly to Bluto.
• B)can obtain damages from Cass for Dee's misconduct.
• C)may be estopped from denying that Dee had authority.
• D)must repudiate Dee's misconduct to avoid liability.

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Definitions:

Factory Overhead Costs

Indirect costs incurred during the manufacturing process, not including the costs of direct labor and materials.

Predetermined Overhead Allocation Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on estimated overhead costs and activity levels before production begins.

Process Costing

An accounting methodology used in manufacturing where costs are assigned to batches or work units, typically used for homogenous products.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.