The Journal Entry to Record the Use of Direct Labor

question 232

True/False

The journal entry to record the use of direct labor in Processing Department #1 would include a debit to Wages Payable.

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Definitions:

First Stage Cost Objects

In activity-based costing, initial categories where costs are collected before being assigned to final cost objects based on their use of activities.

Cost Objects

Items or activities for which costs are measured and assigned, such as products, services, projects, or departments.

Departmental Overhead Rate Method

A cost accounting technique that allocates overhead expenses to specific departments based on varying rates, often used to more accurately reflect the costs incurred by each department.