Rao Corporation Has the Following Balance Sheet

question 47

Multiple Choice

Rao Corporation has the following balance sheet.How much net operating working capital does the firm have?

• A) $54.00
• B) $60.00
• C) $66.00
• D) $72.60
• E) $79.86

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.

Manufacturing Overhead

Costs incurred in the manufacture of a product which are not directly traceable to specific units produced, such as utility costs and maintenance expenses.

Overhead Volume Variance

The difference between the budgeted and actual volume of overhead costs.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of products or in providing services.