Use This Information to Answer the Following Question

question 79

Multiple Choice

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
The entry to record the payment of net payroll would include a

• A) debit to Salaries Payable for $24,000.
• B) debit to Salaries Payable for $15,900.
• C) debit to Salaries Payable for $17,000.
• D) credit to Cash for $18,100.

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Definitions:

Direct Labour

The amount of effort contributed by employees who work directly on manufacturing a product or delivering a service.

Factory Overhead

Indirect costs associated with manufacturing, including costs of utilities, maintenance, and factory equipment depreciation.

Variable Expenses

Costs that change in proportion to business activity or output levels, such as materials costs and utility expenses directly linked to production.

Fixed Expenses

Fixed expenses are consistent costs that do not vary with the volume of business activity, such as rent or salaries.