Tierney Construction,Inc

question 81

Multiple Choice

Tierney Construction,Inc.recently lost a portion of its financial records in an office theft.The following accounting information remained in the office files:
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead.The CFO of Tierney Construction,Inc.has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount of direct materials used?

• A)$15,000.
• B)$29,000.
• C)$20,000.
• D)$24,000. $24,000 = $18,500 + X + $50,000 + $20,000 - $14,500 = $98,000;Where $50,000 = (2.5 x Overhead)= 2.5 x $20,000;X = 24,000

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Definitions:

Appropriate Style

A manner or way of acting, speaking, or presenting that is considered suitable or fitting for a specific context or situation.

Passive Management

A leadership approach where managers may avoid making decisions or taking actions, often leading to a lack of direction or control.

Standards Not Met

The condition of failing to reach established criteria or expected levels of quality.

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, governed by bankruptcy law.