Calculate the unknowns for the following independent situations.
1) Selected data for Liberty Company:
Actual manufacturing overhead costs | $30,500 |
Underallocated manufacturing overhead costs | $2,000 |
Allocated manufacturing overhead is based on 60% of direct labour cost.
A) | Calculate the allocated manufacturing overhead cost. |
B) | Calculate the direct labour cost. |
2) Selected data for Stars Corporation:
Actual manufacturing overhead costs | $27,500 |
Overallocated manufacturing overhead costs | $1,500 |
Manufacturing overhead is allocated at $20 per machine hour.
A) | Calculate the allocated manufacturing overhead cost. |
B) | Calculate the number of machine hours incurred. |