<u>Answer:</u> 41 days
<u>Explanation:</u>
Given
Net credit sales 720000
Accounts receivable opening balance 70000
Accounts receivable closing balance 90000
Average accounts receivable = (opening balance + closing balance) / 2
=(70000+90000)
=160000/2
=80000
Accounts receivable turnover ratio = net sales/ average accounts receivable
=720000/80000
=9 times
Average collection period for accounts receivables
= 365/ accounts receivable turnover ratio
=365/9
=40.5
Average collection period for accounts receivables is 41 days
Answer:
$48,000
Explanation:
The computation of the budgeted net income is shown below:
= Estimated gross margin - incurred selling and administrative expenses - interest expense
= $90,000 - $30,000 - $12,000
= $48,000
In order to find out the budgeted net income we simply deducted the total expenses incurred from the estimated gross margin
Answer:
$30,000
Explanation:
Standard allocation rate = Estimated maufacturing overheads ÷ estimated machine hours
Standard rate = $150,000 ÷ 10,000 hours = $15 per machine hour
Actual overheads incurred = $31,000
Actual machine hours = 2000 hours
Overheads are to be allocated based upon predetermined/standard absorption rate being $15 per machine hour
Manufacturing overheads to be allocated = 2000 hours × 15 per machine hour
Manufacturing overheads to be allocated = $30,000