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Accounting for labour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for labour

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  • April 8, 2016 at 3:27 pm #309320
    shuwentong
    Member
    • Topics: 18
    • Replies: 2
    • ☆

    In a typical cost ledger, what is the double entry for indirect labour cost incurred?
    A DR Wages control CR Overhead control
    B DR Admin overhead control CR Wages control
    C DR Overhead control CR Wages control
    D DR Wages control CR Admin overhead control
    Hi sir,I have a question why DR Admin overhead control is incorrect,in bpp book ,Admin overhead are belong to indirect labour cost

    April 8, 2016 at 5:59 pm #309330
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54458
    • ☆☆☆☆☆

    Admin overheads do not belong to indirect labour costs – they are not labour costs.

    They are both overheads so indirect labour will be debited to overhead control.

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