Fact Pattern 49-1B Town Transport Company (TTC)agrees to Pick Up Two Containers for Two

question 16

Multiple Choice

Fact Pattern 49-1B
Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales,Inc. ,and store their contents,to be delivered later.While TTC un?loads one container,the other disappears from TTC's loading dock.
-Refer to Fact Pattern 49-1B.These facts give rise to

• A)a presumption of negligence by TTC.
• B)a presumption of theft by a third party.
• C)a presumption of theft by TTC.
• D)Unlimited Sales's liability for the container's loss.

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Definitions:

Manufacturing Cost

The total cost related to producing goods, including materials, labor, and overhead expenses.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated within a specified period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on estimates.

Direct Labor-Hours

The entire duration of work performed by staff members directly participating in the manufacturing chain.