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.) 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 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 $3.00 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) 1. 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 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.) =Transferprice The transfer price that would be used is the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable $3.00 perpenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) The transfer price that would be used is 17) 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.) 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 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 $3.00 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) 1. 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 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.) =Transferprice The transfer price that would be used is the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable $3.00 perpenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) The transfer price that would be used is 17) Transfer price
