The assignment of direct labour costs to individual jobs is based on
A) actual total payroll costs divided equally among all the jobs in process.
B) estimated total payroll costs divided equally among all the jobs in process.
C) the actual time spent on each job multiplied by the wage rate.
D) the estimated time spent on each job multiplied by the wage rate.

Question

Quizplus · Accepted Answer

Direct labour costs should be assigned based on the actual time spent on each job multiplied by the wage rate. This method accurately reflects the amount of labour used on each job and ensures that the cost of labour is properly allocated to the corresponding job.

The Assignment of Direct Labour Costs to Individual Jobs Is