Art Parrish Is the Sole Employee of Parrish Sales

question 31

True/False

Art Parrish is the sole employee of Parrish Sales.His company pays a portion of his health insurance premium,and also contributes to his superannuation.The company share of the health insurance premium is $400,and the company contribution to superannuation is $550.The second journal entry in the payroll cycle to record the employee benefits to be paid by the company should include a credit to Employee benefits payable for $950.

---

Definitions:

Job M

A specific production or project operation identified by a unique job number for costing purposes.

Overhead Applied

Overhead applied refers to the allocation of indirect costs to specific products or production areas based on a predetermined rate or method.

Job A578

A specific project or task within an organization, identified by the code A578 for tracking and cost allocation purposes.

Predetermined Manufacturing Overhead

The estimated cost of manufacturing overhead assigned to each unit of production, based on a predetermined rate.