02 Dec The controller of the recently organized Crandall
The controller of the recently organized Crandall Company is considering the two methods listed below for accounting for labor fringe benefits. Which of the two methods is considered acceptable? Method A: Treat all labor fringe benefits as indirect labor by adding them in total to manufacturing overhead. Method B: Treat labor fringe benefits that relate to direct labor as additional direct labor cost and fringe benefits relating to indirect labor as part of manufacturing overhead.A) Only Method A is acceptable.B) Only Method B is acceptable.C) Both Method A and Method B are acceptable.D) Neither Method A nor Method B is acceptable; labor fringe benefits should be treated as period expenses and should be charged off as incurred.
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