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
Ask the Tutor ACCA MA
Accounting for labour
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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