Answer:
The adjustment balance will be of 18,000
Explanation:
We should build Accounts Receivables T-account to get the adjusted balance:
Accounts Receivables
<u>DEBIT CREDIT</u>
15,000 UNADJUSTMENT
<u> 3,000 ADJUSTMENT</u>
18,000 ADJUSTED BALANCE**
**As the adjustment is in the same side as the unadjusted balance, we add it. So we end up with 15,000 + 3,000 = 18,000
Answer:
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Explanation:
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Answer:
B) = $38.44
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>
Activity rate is calculated as:
<em>Activity cost for the period / Total cost drivers for the period</em>
<u><em>Activity rate for supporting customers:</em></u>
<em>The appropriate cost driver to allocate supporting customer activity is the number of customers as given. This is so because it is most likely that the number of customers served will be a major factor that influences the supporting customers activity costs. </em>
<u><em>Activity rate for supporting customers </em></u>
= Supporting customers overhead/total number of customers
= $34,600/(600+300)
= $38.44
