Which of the following internal control activities most likely would prevent direct labor hours from being charged to manufacturing overhead?
A)Periodic independent counts of work-in-process for comparison to recorded amounts.
B)Comparison of daily journal entries with approved production orders.
C)Use of time sheets to record actual labor worked on production orders.
D)Reconciliation of work-in-process inventory with periodic cost budgets.

Question

Quizplus · Accepted Answer

Use of time sheets to record actual labor worked on production orders would ensure that direct labor hours are accurately recorded and charged to the appropriate production order, rather than being erroneously charged to manufacturing overhead. Periodic independent counts of work-in-process, comparison of daily journal entries with approved production orders, and reconciliation of work-in-process inventory with periodic cost budgets all focus on ensuring the accuracy of inventory and cost records, but they do not directly address the issue of direct labor hours being charged to manufacturing overhead.

Which of the Following Internal Control Activities Most Likely Would