Answer:
a. Cash 7,000 Accounts Receivable 7,000
Explanation:
As for the information provided, the payment is received for a sales made in last month, and thus entry at the time of sales shall be:
Accounts Receivables A/c Dr. $7,000
To Sales $7,000
Therefore, when the amount is collected today it will increase cash by debiting cash for the same amount.
Further, balance of accounts receivables will be decreased by crediting such account.
Therefore, correct option is
a. Cash 7,000 Accounts Receivable 7,000
The cost was $1.15 billion
Answer:
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
Explanation:
Giving the following information:
Direct labor, $30,000
Factory overhead applied $6,000.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,000= Estimated manufacturing overhead rate*30,000
6,000 / 30,000 = Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $0.2 per direct labor dollar