The assignment of direct labour 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

The direct labour cost for each job is based on the actual time spent on that job multiplied by the wage rate. This provides the most accurate allocation of labour costs to each individual job.

The Assignment of Direct Labour Cost to Individual Jobs Is