Labor costs that are traced directly to an individual job and represent workers who physically work on the product.
What is Direct Labor?
100
Labor costs related to the production process but not readily traceable to the individual jobs worked on during the period.
What is Indirect Labor?
100
Establishes a definite rate per hour for each employee.
What is an hourly rate plan?
100
The U.S. Dept. of Labor has devised this to allow workers to create their own wage record. (Hint-page 133)
What is a smart phone app?
100
When the financial statement date does not coincide with the ending date for a payroll period this journal entry is required.
What is a Payroll and Payroll Tax Accrual entry?
200
The account that the cost of Direct Labor is debited to.
What is Work in Process?
200
The account that Indirect Labor costs are charged to.
What is Factory Overhead? (also called manufacturing overhead, overhead, factory burden)
200
A wage plan that bases earnings on the employee's quantity of production.
What is a piece rate plan?
200
ADP and Paychex Inc.
What is a payroll preparation service?
200
What employees working shifts other than a regular daytime shift may receive this additional pay.
What is shift premium?
300
The point at which labor costs are determined to be Direct Labor (or Indirect Labor).
What is when time sheet information is analyzed?
300
Labor or Wages for sales people would be considered Indirect Labor under tis circumstance.
What is Never, Nada, Not Gonna Happen? (not within the manufacturing area or process)
300
A wage plan that has elements of hourly and wage rate plans depending on production qouta levels and whether they are met.
****DAILY DOUBLE****
What is a modified wage plan?
300
Summarizes the direct labor and indirect labor charges to a department for the period.
****DAILY DOUBLE****
What is a labor cost summary?
300
A retirement plan that specifies maximum contributions by employer and employee but the amount of pension benefits is not fixed but is tied to the performance of company stock or other investments.
****DAILY DOUBLE****
What is a Defined Contribution Plan?
400
The maintenance crew that maintains machinery in the plant (factory) is this type of labor.
***DAILY DOUBLE***
What is Indirect Labor? ( Did you pay attention? )
400
The wages of auditors working on a specific client would be considered this when analyzing labor costs for a sevice business.
****Daily Double****
What is Direct Labor?
400
Assembles and summarizes each period's payroll data and serves as a subsidiary record for the preparation of the payroll journal entry.
What is a payroll record? (payroll register)
400
An additional hourly rate for extra hours worked.
What is overtime premium?
400
The account that is charged when vacation, holiday, or bonus pay is accrued throughout the year.
What is Factory Overhead?
500
In order for labor to be considered either Direct or Indirect this is where it must take place.
What is within the factory and/or manufacturing area?
500
The first two procedural steps the accounting system of a manufacturer must do for payroll costs.
What is recording and analyzing the hours worked during the payroll period?
500
Used to record the payroll information for each employee each payroll period and serves as the basis for completing the employee's W-2 form for the year.
What is an employee earnings record?
500
Taxes imposed on employers related to Social Security, Medicare, and Unemployment.
What are Payroll Taxes?
500
The reason to accrue for vacation pay each payroll period.
What is because it is earned through daily service to the company throughout the year?