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Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.60 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 6,800 units in April and 6,600 units in May. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Allowance Method
An approach in accounting that calculates expected losses from bad debts by assessing uncollectible accounts at the conclusion of each period.
Estimated Bad Debts
A provision in accounting for the amount of receivables that are expected not to be collected, considered an expense.
Accounts Receivable Turnover
A financial ratio indicating how many times a company's receivables are turned over during a period.
Specific Accounts
Refers to accounts designated for specific purposes or transactions, distinguishing them from general or combined accounts.
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