The Following Totals for the Month of June Were Taken

question 196

Multiple Choice

The following totals for the month of June were taken from the payroll register of Ford Company. The journal entry to record the monthly payroll on June 30 would include a

• A) debit to Salaries Expense for $20,000.
• B) credit to Salaries Payable for $20,000.
• C) debit to Salaries Payable for $20,000.
• D) debit to Salaries Expense for $13,267

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Definitions:

Activity-Based Costing

A pricing strategy that pinpoints various tasks within a company and allocates the expenses of each task to every product and service based on their specific usage.

Overhead Rate

A calculation used to allocate indirect costs to produced goods or services, often based on labor hours, machine hours, or direct labor costs.

Cost of Services Account

An accounting category that includes all direct costs associated with the delivery of services, such as labor and materials.

Job Costs

The total expenses associated with a specific job or project, including labor, materials, and overhead, used for pricing and profitability analysis.