XYZ Company Has Direct Labor for the Month of $40,000

question 76

Multiple Choice

XYZ Company has direct labor for the month of $40,000.XYZ's annual overhead is $600,000 and annual direct labor cost is $1,000,000.Overhead is applied based on direct labor.What is the entry to charge direct labor to production?

• A)Debit Work-in-Process Inventory $40,000;credit Payroll Payable $40,000
• B)Debit Manufacturing Overhead-Applied $40,000;credit Work-in-Process Inventory $40,000
• C)Debit Work-in-Process Inventory $24,000;credit Manufacturing Overhead-Applied $24,000
• D)Debit Work-in-Process Inventory $66,000;credit Manufacturing Overhead-Applied $66,000

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Definitions:

Thalamus

A brain structure that acts as a relay center, directing sensory signals to the appropriate areas of the brain cortex.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movements, reasoning, planning, problem-solving, and aspects of personality and emotional control.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, associated with complex cognitive functions.

Neural Firing

The process by which neurons transmit information through electrical and chemical signals.