Juarez Builders Incurred $285,000 of Labor Costs for Construction Jobs

question 107

Multiple Choice

Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August,of which $212,000 was direct and $73,000 was indirect supervisory costs.The correct journal entry to record the $73,000 indirect labor for the month is:

• A)Debit Supervisor Wage Expense;credit Factory Wages Payable.
• B)Debit Factory Overhead;credit Factory Wages Payable.
• C)Debit Supervisor Wage Expense;credit Factory Overhead.
• D)Debit Factory Wages Payable;credit Factory Overhead.
• E)Debit Factory Wage Expense;credit Cash.

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Definitions:

Housing Prices

denote the value assigned to residential properties and homes, which fluctuate based on factors like location, demand, economic conditions, and interest rates.

Housing Bubble

An economic condition characterized by rapid increases in the valuations of real property until they reach unsustainable levels followed by a sharp decline.

Real Terms

Values adjusted for inflation, reflecting the actual purchasing power.

Behavioral Economics

The study of psychology as it relates to the economic decision-making processes of individuals and institutions.