Tierney Construction,Inc

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 total manufacturing cost?

A) $83,000.
B) $94,000.
C) $108,000.
D) $75,000.
= $94,000 = $24,000 Direct Materials Used + $50,000 Direct Labor + $20,000
Overhead = $94,000 Total Manufacturing Cost
Where Direct Labor = 2.5($20,000) = $50,000