Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canvas Company manufactures one type of camping tent tarp. Canvas Co. has two divisions: Stitching and Finishing. The Stitching Division manufactures torps for the Finishing

image text in transcribed
image text in transcribed
Canvas Company manufactures one type of camping tent tarp. Canvas Co. has two divisions: Stitching and Finishing. The Stitching Division manufactures torps for the Finishing Division, which completes the tarp (unit) and sells it to retailers Stitching "sells tarps internally to Finishing. Stitching is operating at full capacity. Finishing is operating at 80% of capacity. The market price for finished tent tarps is $32.00 Stitching's costs per tarp are: Direct Materials Direct Labor Variable overhead Division fixed costs $10.00 $ 80D $ 600 $ 4.00 Finishing's costs per tarp are: Direct Materials Direct Labor Variable overhead Division fixed costs $13.00 $9.00 $ 700 $ 500 i Canvas Couses an internal transfer price policy of transfer prices ore 180% of verloble costs, what is the transfer price? If Canvas Co. uses an internal transfer price policy of transfer prices are 180% of variable costs, what is the transfer price? Multiple Choice O $43.20 O $57.60 $50.40 $52.20

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

Step: 3

blur-text-image

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

Corporate Governance And Statutory Audit Stakes And Articulations

Authors: Chefick Olagbèyindé Olafa

1st Edition

6204385682, 978-6204385686

More Books

Students also viewed these Accounting questions

Question

Conduct an effective performance feedback session. page 360

Answered: 1 week ago