Trekker Trash and Recycling Is Expected to Have Receivables of $1,234,000

question 21

Multiple Choice

Trekker Trash and Recycling is expected to have receivables of $1,234,000 in January, $989,700 in February and $1,020,000 in March. The company's pattern of cash collections is 60% in the month following the sale, and 40% in the month after that. How much will Trekker collect from its receivables in March?

• A) 1,001,820
• B) 1,007,880
• C) 1,020,000
• D) 1,087,420
• E) 1,136,280

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of materials that were expected to be used.

February

The second month of the year in the Gregorian calendar, known for having 28 days in common years and 29 days in leap years.

Variable Overhead Efficiency Variance

A measure of the efficiency in which variable overheads are used, calculated by comparing the standard cost of variable overhead for actual production to the actual variable overhead incurred.

January

January, which stands as the opening month of the year according to the Gregorian calendar.