Canberra Company uses a job order cost accounting system.During the current month,the factory payroll of $180,000 was paid in cash.The amount of labor classified as direct labor was three times greater than the amount classified as indirect labor.What amount should be debited to Factory Overhead for indirect labor for this month?
A) $135,000
B) $180,000
C) $45,000
D) $60,000
E) $20,000

Question

Quizplus · Accepted Answer

Factory Payroll = Direct Labor + Indirect Labor
$180,000 = x + 3x
$180,000 = 4x
$45,000 = x

Canberra Company Uses a Job Order Cost Accounting System