Pharoah Engineering Contractors incurred employee payroll costs of $32,400 ( $25,200 direct and $7,200 indirect) on an engineering
project. The company applies overhead at a rate of 25% of direct labor cost.
Record the entries to assign payroll liabilities and to apply overhead. (List all debit entries before credit entries. Credit account titles are
automatically indented when the amount is entered. Do not indent manually.)
