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 total manufacturing cost?
A)$50,000.
B)$52,000.
C)$56,000.
D)$58,000. $56,000 = $31,000 + $15,000 + $10,000 Where $15,000 = 1.5($10,000)

Question

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 total manufacturing cost?
A)$50,000. 
B)$52,000. 
C)$56,000. 
D)$58,000. $56,000 = $31,000 + $15,000 + $10,000 Where $15,000 = 1.5($10,000)

Quizplus · Accepted Answer

According to the given information, direct labor cost incurred is 1.5 times the factory overhead. Let the factory overhead be x. Then the direct labor cost incurred would be 1.5x. The total manufacturing cost would be the sum of direct materials, direct labor, and factory overhead. Using the values given in the answer choices, only option C satisfies this condition. Therefore, the amount of total manufacturing cost is $56,000.