Fisher,Inc

Multiple Choice

Fisher,Inc.recently lost a portion of its records in an office fire.The following information was salvaged from the accounting records.
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead.The CFO of Fisher,Inc.has asked you to recalculate the following accounts and to report to him by the end of the day.
What is the amount of direct materials purchased?

A) $24,000.
B) $28,000.
C) $31,000.
D) $36,000.
$24,000 = $31,000 - ($12,000 - $5,000) = $24,000