Using the information below for Hardy Company; determine the manufacturing costs added during the current year:
A) $12,000.
B) $16,100.
C) $17,100.
D) $18,100.
E) $13,600

Question

Quizplus · Accepted Answer

The manufacturing costs added during the current year would include direct materials, direct labor, and overhead costs. The information provided only gives us the direct materials and direct labor costs, which add up to $10,000 + $5,000 = $15,000. We then need to add the overhead costs, which are estimated to be 120% of direct labor costs. Therefore, 120% of $5,000 = $6,000. Adding this to the direct materials and direct labor costs gives us a total of $10,000 + $5,000 + $6,000 = $17,000. The closest answer choice to this amount is C, $17,100.

Using the Information Below for Hardy Company; Determine the Manufacturing