Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products.
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Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements, Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's Requirement 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. The lowest acceptable transfer price for the divisions is the Small Components Division's Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 5%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overtisad decreasing by $1.00 per unit. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Cost-plus transfer price The transfer price that would be used is Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, what transfer price would be used? Assume that the company does not consider fixed manufacturing -...---------------------------..........---...---L--------- Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Divis ed between the divisions of th the Small Components Divisi conversion costs direct materials plus variable manufacturing costs market price sale price variable costs r of the Small Components Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, 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.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirement 4. If the company's policy requires that all in-house transfers must be priced at fu fixed manufacturing overhead decreasing by $1.00 per unit. (Round your answer to the nearest Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation u = Cost-plus trar Market Price x 1.05 must be priced at to nswer to the neares Variable Cost Variable Cost * 1.05 (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.05 (Variable Cost + Fixed MOH Cost + Variable Selling Expense) * 1.05 egy. (Abbreviation u Transfe The transfer price that would be used is Requirement 5. If the company's policy requires that all in-house transfers must be overhead in setting its internal transfer price in this scenario. (Round your answer to Begin by selecting the formula to compute the transfer price under this strategy. (Ab Market Price x 1.26 Variable Cost ing expe would d 1 Variable Cost * 1.26 (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.26 (Variable Cost + Fixed MOH Cost + Variable Selling Expense) * 1.26 egy. (Abi The transfer price that would be used is beeee from anlit nu itbeinu field and then continue Requirement 5. If the company's policy requires that all in-house transfers must overhead in setting its internal transfer price in this scenario. (Round your answer Begin by selecting the formula to compute the transfer price under this strategy. ( Market Price x 1.10 Variable Cost Variable Cost 1.10 ex uld (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.10 (Variable Cost + Fixed MOH Cost + Variable Selling Expenses) * 1.10 The transfer price that would be used is Requirements X prod rice e trai se und er thi 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. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 5%, 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 $1.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, 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 company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) th trail und er thi arial Ove Print Done e fu RG er this strategy TUTVALTOITUSto. TVIUIT TVIATTUTA tummy UVCmcau. Transfer price Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements, Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's Requirement 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. The lowest acceptable transfer price for the divisions is the Small Components Division's Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 5%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overtisad decreasing by $1.00 per unit. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Cost-plus transfer price The transfer price that would be used is Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, what transfer price would be used? Assume that the company does not consider fixed manufacturing -...---------------------------..........---...---L--------- Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Divis ed between the divisions of th the Small Components Divisi conversion costs direct materials plus variable manufacturing costs market price sale price variable costs r of the Small Components Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, 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.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirement 4. If the company's policy requires that all in-house transfers must be priced at fu fixed manufacturing overhead decreasing by $1.00 per unit. (Round your answer to the nearest Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation u = Cost-plus trar Market Price x 1.05 must be priced at to nswer to the neares Variable Cost Variable Cost * 1.05 (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.05 (Variable Cost + Fixed MOH Cost + Variable Selling Expense) * 1.05 egy. (Abbreviation u Transfe The transfer price that would be used is Requirement 5. If the company's policy requires that all in-house transfers must be overhead in setting its internal transfer price in this scenario. (Round your answer to Begin by selecting the formula to compute the transfer price under this strategy. (Ab Market Price x 1.26 Variable Cost ing expe would d 1 Variable Cost * 1.26 (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.26 (Variable Cost + Fixed MOH Cost + Variable Selling Expense) * 1.26 egy. (Abi The transfer price that would be used is beeee from anlit nu itbeinu field and then continue Requirement 5. If the company's policy requires that all in-house transfers must overhead in setting its internal transfer price in this scenario. (Round your answer Begin by selecting the formula to compute the transfer price under this strategy. ( Market Price x 1.10 Variable Cost Variable Cost 1.10 ex uld (Variable Cost + Fixed MOH Cost) (Variable Cost + Fixed MOH Cost) * 1.10 (Variable Cost + Fixed MOH Cost + Variable Selling Expenses) * 1.10 The transfer price that would be used is Requirements X prod rice e trai se und er thi 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. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 5%, 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 $1.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 26%, 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 company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) th trail und er thi arial Ove Print Done e fu RG er this strategy TUTVALTOITUSto. TVIUIT TVIATTUTA tummy UVCmcau. Transfer price
