The Payroll Journal Entries for Two Employees with the Same

question 27

Multiple Choice

The payroll journal entries for two employees with the same gross pay may not show the same net pay because-

• A)the tax deductions may based on different claim amounts
• B)the other deductions may not be the same
• C)the employees live in different provinces
• D)all of the above

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process.

Absorption Cost

A cost accounting method that totals all costs associated with manufacturing a product, including all direct and indirect costs.

Direct Labor Dollars

The total amount of money spent on wages for employees who directly work on manufacturing a product or providing a service.

Traditional Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.