The gross earnings of factory workers for Lee Ltd during the month of January are $100,000. The employer's payroll taxes for the factory payroll are $12,000. Of the total accumulated cost of factory labour, 75% is related to direct labour and 25% is attributable to indirect labour.
Instructions :
(a) Prepare the entry to record the factory labour costs for the month of January.
(b) Prepare the entry to assign factory labour to production.
(c) Prepare the entry to assign manufacturing overhead to production, assuming the predetermined overhead rate is 125% of direct labour cost.

Question

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The Answer of The gross earnings of factory workers for Lee Ltd during the month of January are $100,000. The employer's payroll taxes for the factory payroll are $12,000. Of the total accumulated cost of factory labour, 75% is related to direct labour and 25% is attributable to indirect labour.
Instructions :
(a) Prepare the entry to record the factory labour costs for the month of January.
(b) Prepare the entry to assign factory labour to production.
(c) Prepare the entry to assign manufacturing overhead to production, assuming the predetermined overhead rate is 125% of direct labour cost.

The Gross Earnings of Factory Workers for Lee Ltd During