Final answer:
The incorrect statement about labor time and cost in a job order costing system is that a machine operator should charge routine maintenance to a specific job; this cost should be treated as overhead.
Step-by-step explanation:
The statement that is NOT correct about labor time and cost in a job order costing system is: B) a machine operator performing routine maintenance and charging a specific job. In a job order costing system, the cost of routine maintenance should be allocated as overhead rather than being charged directly to a specific job unless the maintenance is being done specifically for that job.
For clarity, let’s review the statements:
- A) Time tickets kept by employees show the amount of work on specific jobs, which is true as they are used to track direct labor hours worked on particular jobs.
- C) The job cost sheet for a job contains all direct labor (DL) charges to that particular job, which is also true as it captures all the direct costs associated with a job.
In job order costing, direct labor is attributed to specific jobs on the basis of time spent, while indirect labor, such as maintenance, is usually treated as manufacturing overhead and not attributed to individual jobs.