Answer:
e. under-applied by $4,000
Explanation:
The overhead rate was calcualte considering labor cost:
144,000 / 240,000 = 0.60
Each dollar of labor cost applies 60 cent of overhead
applied overhead:
$220,000 labor cost x 0-60 each = 132,000 applied overhead
now we compare against the 136,000 actual overhead
as we didn't met the value and fell short, we have underapplied the overhead.
Answer:
Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or check payments. Trade credit is a helpful tool for growing businesses, when favorable terms are agreed with a business's supplier.
Explanation:
Trade credit allows businesses to receive goods or services in exchange for a promise to pay the supplier within a set amount of time. New businesses often have trouble securing financing from traditional lenders; buying inventory, for example, on trade credit helps increase their purchasing power.
