Asked by Jessica Colley on Jun 03, 2024
Verified
The assignment of direct labour costs to individual jobs is based on
A) actual total payroll costs divided equally among all the jobs in process.
B) estimated total payroll costs divided equally among all the jobs in process.
C) the actual time spent on each job multiplied by the wage rate.
D) the estimated time spent on each job multiplied by the wage rate.
Estimated Time
The approximation of the time required to complete a specific task or project.
Direct Labour Costs
Expenses directly tied to the production of goods or services, including wages of workers physically making a product.
Individual Jobs
Specific, unique production tasks or orders customized to meet particular customer requirements.
- Comprehend the assignment and implication of direct labor costs in job costing.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
Direct labour costs should be assigned based on the actual time spent on each job multiplied by the wage rate. This method accurately reflects the amount of labour used on each job and ensures that the cost of labour is properly allocated to the corresponding job.
Learning Objectives
- Comprehend the assignment and implication of direct labor costs in job costing.
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