Accounting for labour

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April 8, 2016 at 3:27 pm #309320
shuwentong
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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
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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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