Stephenson Company's Computer System Recently Crashed,erasing Much of the Company's

question 35

Multiple Choice

Stephenson Company's computer system recently crashed,erasing much of the Company's financial data.The following accounting information was discovered soon afterwards on the CFO's backup computer disk.
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead.The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.What should be the amount of direct materials purchased?

• A)$14,500.
• B)$17,000.
• C)$10,000.
• D)$21,000. $14,500 = $8,500 - ($38,000 - $44,000)= $14,500

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Definitions:

Salary Allowances

Specific amounts designated for employees that are over and above their standard salary, often for specific purposes like housing, transportation, or special duties.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically 35-40 hours per week.

Division of Income

The distribution of a company's earnings among various stakeholders, such as dividends for shareholders or reinvestment into the business.

Half Time

A term typically associated with employment or academic status, indicating a work or study load that is half of what is considered full time.