When Using a Standard Costing System,which of the Following Should

question 34

Multiple Choice

When using a standard costing system,which of the following should be recorded for labor as a product is being made?

• A)Debit wages payable for the actual hours of labor at the standard rate and credit work in process for the actual hours worked at the standard rate.
• B)Debit wages payable for the standard hours at the standard rate and credit work in process for the actual hours at the actual rate.
• C)Credit wages payable for the standard hours at the standard rate and debit work In process for the standard hours at the actual rate.
• D)Credit wages payable for the actual hours at the actual rate and debit work in process for the standard hours at the standard rate.

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Definitions:

Average Investment

The sum of the initial investment and the value at the end of the investment period divided by two, often used in calculating returns.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Useful Life

The estimated period a fixed asset is expected to be useful to the purchasing company, affecting its depreciation calculations.

Total Income

The sum of all revenues and gains earned by a company during a specific period, including sales, interest, dividends, and other sources of income.