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

The assignment of direct labor cost to individual jobs is accurately done by tracking the actual time spent on each job and then multiplying that time by the wage rate of the employees who worked on the job. This method ensures that labor costs are allocated based on the actual effort expended on each job, providing a precise measure of labor costs for job costing purposes.

The Assignment of Direct Labor Cost to Individual Jobs Is