Daktari Enterprises' Schedule of Earnings and Payroll Taxes for April is as follows: Assuming overhead is a result of the random scheduling of jobs,the entry to record and distribute the employer's payroll taxes would include:

Question

Daktari Enterprises' Schedule of Earnings and Payroll Taxes for April is as follows:  Assuming overhead is a result of the random scheduling of jobs,the entry to record and distribute the employer's payroll taxes would include:

Quizplus · Accepted Answer

Overhead is a result of the random scheduling of jobs, therefore the entry to record and distribute the employer's payroll taxes would include a debit to Factory Overhead for $14,950. This represents the indirect cost of the payroll taxes and would increase the overhead account. Choices B, C, and D do not accurately represent the proper entry to record and distribute these payroll taxes.