Calculate the Unknowns for the Following Independent Situations

question 105

Essay

Calculate the unknowns for the following independent situations.
1.Selected data for Lion Corporation:

Allocated manufacturing overhead is based on 50% of direct labor cost.
a.Calculate the allocated manufacturing overhead cost.
b.Calculate the direct labor cost.
2.Selected data for Tiger Corporation:

Manufacturing overhead is allocated at $15 per machine hour.
a.Calculate the allocated manufacturing overhead cost.
b.Calculate the number of machine hours incurred.

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Definitions:

Fair Value Option

An accounting choice giving companies the opportunity to measure financial assets and liabilities at their fair values with changes reflected in the income statement.

Net Income

Net income represents the total earnings of a company once all costs, expenses, and taxes are deducted from its total revenue.

Dividends

Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional stock.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net assets of the investee.