Which of the following statements is false?

a. Indirect labor is assigned as a part of overhead.

b. The cost of a job includes direct materials, direct labor, and applied overhead.

c. Actual overhead costs always enter the Work-in-Process account.

d. The use of normal costing means that overhead is applied to each job using a predetermined rate.

e. None of these choices are correct.

Question

Lexi Case

Business

17 June, 21:20

Which of the following statements is false?

a. Indirect labor is assigned as a part of overhead.

b. The cost of a job includes direct materials, direct labor, and applied overhead.

c. Actual overhead costs always enter the Work-in-Process account.

d. The use of normal costing means that overhead is applied to each job using a predetermined rate.

e. None of these choices are correct.

+4

Answers (1)

Know the Answer?

Janet Bell · Answer 1

Answer: Actual overhead costs always enter the Work-in-Process account.

Explanation:

The work-in-process account is an account where the value of goods yet to be completely produced are recorded while the overhead cost is simply a business running cost, that is cost on expenses the business makes to keep functioning.

Overhead cost is not recorded in work-in-process account, rather it is recorded as business expenses.