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

question 14

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 used?

• A)$8,500.
• B)$7,000.
• C)$12,500.
• D)$2,000. $8,500 = $35,500 + $73,500 + X + $49,000 - $126,000 = $40,500; Where $73,500 = (1.5 x Overhead);X = $8,500

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Definitions:

Business Intelligence

Refers to technological processes and tools that transform raw data into meaningful and useful information for business analysis purposes.

Financial Management

The practice of planning, directing, and controlling financial activities such as procurement and utilization of funds of an enterprise.

HR Management

The practice of recruiting, managing, and developing an organization's employees to maximize their performance.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.