In accounting for labor costs, what is the distinction between the accounting treatment for regular pay and overtime premium pay?

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David · Accepted Answer

Regular pay is directly chargeable to the particular 
job to which it is related . however , when it cannot be 
related to a particular job , we consider it as indirect 
wages and is charged to the overhead account .  
Accounting entry : 
 
a) for total wages : 
 
wages control a/c    DR  
to cost ledger control a/c  
 
b) for wages directly chargeable to a various job : 
work in progress a/c     DR 
  to wages control account  
c) for indirect wages :

In accounting for labor costs, what is the distinction between the accounting treatment for regular pay and overtime premium pay?

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