Urban Transit Authority (UTA) runs a mass transit system in a large metropolitan area. UTA applies the costs of its services to each bus route. The standard direct labor cost (i.e. the drivers) is $15.50/hour. The standard route takes 2 hours to complete. This month, the company ran 4,000 routes, averaged 2.25 hours per route, and paid an average wage of $14/hour.
What is the entry to record wages incurred?

Question

Urban Transit Authority (UTA) runs a mass transit system in a large metropolitan area. UTA applies the costs of its services to each bus route. The standard direct labor cost (i.e. the drivers) is $15.50/hour. The standard route takes 2 hours to complete. This month, the company ran 4,000 routes, averaged 2.25 hours per route, and paid an average wage of $14/hour. 
What is the entry to record wages incurred?

Quizplus · Accepted Answer

The Answer of Urban Transit Authority (UTA) runs a mass transit system in a large metropolitan area. UTA applies the costs of its services to each bus route. The standard direct labor cost (i.e. the drivers) is $15.50/hour. The standard route takes 2 hours to complete. This month, the company ran 4,000 routes, averaged 2.25 hours per route, and paid an average wage of $14/hour. 
What is the entry to record wages incurred?

Urban Transit Authority (UTA) Runs a Mass Transit System in a Large