Jolly CoHad Net Sales of $111,500 and Accounts Receivable of $12,700

question 114

Multiple Choice

Jolly Co.had net sales of $111,500 and accounts receivable of $12,700.Its days' sales uncollected was

• A)11.7
• B)23.3
• C)41.6
• D)42.5
• E)46.6

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Definitions:

Direct Labor Hours

The total time workers spend creating a product or service, directly associated with the production process.

Plantwide Overhead Rate

A single overhead rate calculated by dividing all factory overhead costs by a base, applied across all production activities within a plant.

Machine Hours

A measure of the amount of time a machine is used in the production process, often used as a basis for allocating overhead costs.

Allocation Base

A measure or criteria used to distribute costs or resources among different departments, products, or activities in a systematic manner.