Answer:
The difference is 22.34 days which results in late payments
Explanation:
For computing the DSO we have to compute the accounts receivable turnover ratio which is shown below:
Accounts receivable turnover ratio = Credit sales ÷ average accounts receivable
= $325,000 ÷ $60,000
= 5.42 times
and the average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 5.42 times
= 67.34 days
Actual credit period is given is 45 days
But the resulted days are 67.34 days
So, the difference is 22.34 days which results in late payments
Answer:
63218
Explanation:
Annuity -3300
FVAD (from table) at 15years, 3% = 19.1569
Future value = 63217.77=63218
Answer:
The optimal order will be of 100 units
Explanation:
We will solve this using the EOQ (economic order quantity) formula:
D = annual demand 500 units
S= setup cost = ordering cost = 50.00 dollars
H= Holding Cost = 5.00 dollars
EOQ = 100
Dec 31 Management Services ....................................$1875
To Prepaid Expenses.....................................................$1875
(Being prepaid expenses recognised for the year)
Answer:
Correct answer is A.
<u>$14.38 per direct labor-hour</u>
Explanation:
If the budgeted direct labor time for December is 8,000 hours, then total budgeted factory overhead per direct labor hour is (rounded):
Total budgeted factory overhead for December= Variable Factory Overhead rate per direct labor hour * budgeted direct labor time for December + Fixed Factory Overhead per month
Total budgeted factory overhead for December = 5*8000 + 75000
Total budgeted factory overhead for December = $ 115,000
Total budgeted factory overhead per direct labor hour = Total budgeted factory overhead for December/budgeted direct labor time for December
Total budgeted factory overhead per direct labor hour = 115000/8000
Total budgeted factory overhead per direct labor hour = 14.38
