Calculate the Unknowns for the Following Independent Situations

question 40

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

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Title Conveyance

The legal process of transferring ownership of property from one party to another.

Journal Entry

A record in accounting that logs a transaction and its impact on financial statements, consisting of a debit and a credit.