Financial Statements for Orange Company Appear Below: Dividends

question 1

Multiple Choice

Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's average sale period for Year 2 was closest to:

• A)23.2 days
• B)29.5 days
• C)33.2 days
• D)20.6 days

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.

Machine-Hours

The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, such as utilities and salaries for management.

Direct Labor-Hours

The total number of hours worked directly on the production of goods, used as a basis for allocating overhead costs in some accounting systems.