CIMA BA2 · Chapter 8 · Question 6 of 9
Gross wages for a period were $92,000, of which $68,000 was for direct labour and $24,000 for indirect labour (supervisors and maintenance staff). In an integrated system, what amount is DEBITED to the production overhead control account in respect of wages?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $24,000
Explanation
Only indirect labour is treated as production overhead, so production overhead control is debited with $24,000. The direct labour of $68,000 is debited to work in progress, and the full $92,000 is credited out of the wages control account.
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