The assignment of direct labor cost to individual jobs is based on:
A)an estimate of the total time spent on the job.
B)actual total payroll cost divided equally among all jobs in process.
C)estimated total payroll cost divided equally among all jobs in process.
D)the actual time spent on each job multiplied by the wage rate.
E)the estimated time spent on each job multiplied by the wage ratE.

Question

Quizplus · Accepted Answer

Direct labor cost should be based on the actual time spent on each job multiplied by the wage rate. This method ensures that the cost assigned to each job is accurate and reflects the actual labor input used in production.

The Assignment of Direct Labor Cost to Individual Jobs Is