The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)?

The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)?

A) manufacturing overhead for $1,700
B) work in process inventory for $1,500 and a credit to manufacturing overhead for $200
C) work in process inventory for $1,500 and a debit to manufacturing overhead for $200
D) work in process inventory for $1,700


Answer: C

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated?

A) by dividing the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
B) by dividing the total estimated quantity of allocation base by the total estimated manufacturing overhead costs
C) by multiplying the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
D) by dividing the total estimated manufacturing overhead costs by the total actual quantity of the allocation base


Answer: A

Which of the following is the most significant cost for a service company which used job order costing?

A) labor costs
B) indirect costs
C) supplies costs
D) overhead costs


Answer: A