Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Assume the Smal Components Division of Martin Manufacturing produces a video canded in the assembly of a variety of election products Click the icon to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Assume the Smal Components Division of Martin Manufacturing produces a video canded in the assembly of a variety of election products Click the icon to view addisional information Read the remote Required 1. What is the highest acceptable price for the chesions? The chest acceptable tale pice for the division is the Smut Components Dhan's Requirement 2. Minuming the transfer price is negotiated bohonan na ovirons of the company what would be we lewent acceptable transfer price? Assumo variablu selling expenses pertanto outside sales only The comptable and pe for the division is the Sat Comentalis Homest. Which orice would the manage the Small Components? Which tramite i would the mariages of the Congo Divine protet? The manager of the Seal Components will proboratante The manager Computer des of Recent company polysates both coth what a pice would be that the increase production veled to the arch nemouth and the continue to More Info W Manufacturing pd $ riable selling expenses pertain te The division's manufacturing costs and variable selling expenses related to the video card are as follows: ransfer price for the Cost per unit isions is the Small Direct materials 16.00 Direct labor $ 6.00 negotiated between Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead (at current production level) S 12.00 visions is the Small Variable selling expenses 9.00 The Computer Division of Martin Manufacturing can use the video card produced the manager of the Sml by the Small Components Division and is interested in purchasing the video card In-house rather than buying it from an outside supplier The Small Components Ision would prefer a trall Division has sufficient excess capacity with which to make the extra video cards Because of competition, the market price for this video card is $34 regardless of ald prefer a transfer price whether the video card is produced by Martin Manufacturing or another company quires that all in-house to n verhand Harraninn he Print Done Ser in the indulfields and CA sion prefer? Jume that the increased production lov Requirements - X anufactu 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. ansfer price 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? sions is the 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 6%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by 53.00 per unit (Round megotiated be your answer to the nearest cent) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing sions is the variable cost plus 22%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its Internal transfer price in this scenario. (Round your answer to the nearest cent.) 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the e manager of company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing on would prefel overhead would drop by $3.00 per unit as a result of the increased production resulting from the prefer a transi Internal transfers (Round your answer to the nearest cent) penses perta Ires that all in-ho warhead docena greased productic Print Done in the input held Read the Requirement de company's policy that is house was must be priced at Mistertion cost pleswhotrader price would be used? Assume that the increased production level needed to the Waterwordin fonducting overhead down by $300 persond your answer to the recent Beyn by electry the formule to come afer price under sogy (Abbreviation und MOH - Manufacturing overhead) Cont plus ancier police Reque the honestedatto che contin 22 What baster price would be used Assume that the company does not considered and there to mercat Hep by som mal price under this wet MOH Morecturing overhad) Tape hinh.com win 10 of the war Choose encontre Requirements of the company's policy requires that all those transfers must be pridat total manufacturing able cost plus 22 what transfer price would be used? Assume that the company does not consider fired manufacturing overhead in seting sistemal transfer price in this scene (Rond your answer to the Bags by Seing the formato come the depender in strategy revised Manufacturing everad the price There Heathcourte variable ingenioso y policy the absorption cost and the valable en We would be the manufacium op 1) promote the contentem transtor Mund your answer to the tegnbygeumother AwMCHI Mandag Want There was Choose to meet your name contener esto

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Impact Of Auditor Rotation On Audit Quality A Field Study From Egypt

Authors: Diana Mohamed

1st Edition

3848425378, 978-3848425372

More Books

Students explore these related Accounting questions