Aspen Technologies has the following budget data: Estimated direct labor hours 10,400 Estimated direct labor dollars $63,700 Est
imated factory overhead costs $156,600 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$12.05 b.$22.59 c.$18.07 d.$15.06
Answer: The correct answer is a). The sum of the debits will equal the sum of the credits.
Explanation: When a journal entry is posted as same amount to both the debit and credit it balances up in the trial balance.
In the same vein, irrespective of the error in the ledger raised and posted in the trial balance, the sum will be equal on both the debit side and the credit side.
The following summarizes the solution to the given problem.
Explanation:
The given values are:
Sales,
= $660,000
Expenses,
= $255,453
Received cash revenues,
= $605,934
(a)
According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.
⇒
On substituting the given values, we get
⇒
⇒ ($)
(b)
⇒
On substituting the given values, we get
⇒
⇒ ($)
(c)
The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
It accepts the profits throughout a similar time frame.