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    Credit Sales/Overhead Costs

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    Please help me with the following:

    THE FOLLOWING ARE CREDIT SALES BUDGET BY BELL COMPANY:
    JAN $124,000
    FEB 120,000
    MAR 135,000
    APR 140,000
    MAY 142,000
    Usually, the company collects 50% of the accounts receivable in the month of sale, 30% in the month following the sale, and 18% in the second month following the sale. TWO percent are uncollectible. How much does the company anticipate as cash receipts for March?
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    also, please:
    Lite Manufacturing Company prepared a fixed budget of 40,000 direct labor hours, with estimated costs of $200,000 for variable overhead and $60,000 for fixed overhead. Lite then prepared a flexible budget at 38,00 labor hours. HOW MUCH IS TOTAL OVERHEAD COSTS AT THIS LEVEL OF ACTIVITY?
    Thank you very much.

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    https://brainmass.com/business/accounting/credit-sales-overhead-costs-159103

    Solution Summary

    Solution contains calculations of cash receipts and overhead costs.

    $2.19

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