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Canberra Company uses a job order cost accounting system. During the current month, the
factory payroll of $234,000 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?
$175,500
$234,000
$58,500
$78,000
$26,000
Solution
Ans
Details Amount
Factory payroll in cash 2,34,000.00
Ration of Direct labour to Indirect Labour "3:1
Indirect Labour 234000*1/4 58,500.00
Canberra Company uses a job order cost accounting system- During the c.docx

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Canberra Company uses a job order cost accounting system- During the c.docx

  • 1. Canberra Company uses a job order cost accounting system. During the current month, the factory payroll of $234,000 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? $175,500 $234,000 $58,500 $78,000 $26,000 Solution Ans Details Amount Factory payroll in cash 2,34,000.00 Ration of Direct labour to Indirect Labour "3:1 Indirect Labour 234000*1/4 58,500.00