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:

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and receive dividends.

No-par Common Stock

Shares issued without a par value, allowing the company more flexibility in setting their price.

Paid-in Capital

The total amount of capital that shareholders have contributed to a company in exchange for shares of stock.

Fair Market Value

The price that a willing buyer and a willing seller agree upon when both parties have reasonable knowledge of the relevant facts and neither is under compulsion to buy or sell.