ECONOMICS

Detailed explanation-1: -In a typical cost ledger, what is the double entry for indirect labour cost incurred? Admin overheads do not belong to indirect labour costs – they are not labour costs. They are both overheads so indirect labour will be debited to overhead control.

Detailed explanation-2: -how would the cost be recorded in the cost ledger if the direct labour costs in a manufacturing company are $95000? All wages (whether direct or indirect) will be debited to the wages account.

Detailed explanation-3: -Indirect costs include costs which are frequently referred to as overhead expenses (for example, rent and utilities) and general and administrative expenses (for example, officers’ salaries, accounting department costs and personnel department costs).

Detailed explanation-4: -Indirect labor is considered an overhead as these costs cannot be assigned to any one project or service.

Detailed explanation-5: -Expert-Verified Answer. C) Work in process would be debited to record direct labour costs.