Chapter 1, Problem 44DQ

General Accounting

Calculate net income under full costing on these general accounting question

Valley Tools has a Days Sales Outstanding of 28 days. The company reports average daily sales of $22,500. What is the level of its accounts receivable?

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Volex Inc. uses direct labor-hours to apply overhead. • Estimated overhead = $480,000 • Actual overhead = $470,000 • Actual direct labor-hours 30,000 hours ⚫ Overhead was overapplied by $10,000 • What is the predetermined overhead rate?

ANSWER?

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