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Otrada [13]
3 years ago
12

Departmental overhead rates may not correctly assign overhead costs due to:

Business
1 answer:
Vika [28.1K]3 years ago
6 0

Answer:C.overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity ofproduction.

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3 years ago
The allowance for doubtful accounts currently has a debit balance of $200. The company's management estimates that 2.5% of net c
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Answer:

Bad debt expense (w/o allowance) = $2,875

Bad debt expense ( with allowance) = $2,675.

Explanation:

According to the scenario, the given data are as follows:

Net credit sales = $115,000

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So, we can calculate the bad debt expense without Allowance for doubtful accounts by using following method:

Bad debt expense ( W/o allowance) = $115,000 × 2.5%

= $2,875

After Allowance for doubtful expense

Bad debt expense = $2,875 - $200

= $2,675

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