Division Y wants to buy the component they use in these finished product from Division X. The variable costs of Division Y will be incurred whether it buys the component from Division X or from an outside supplier. Assume Division X has excess capacity. Division Y can buy the component from an outside supplier for $32 per unit. What is the lowest transfer price per unit at which Division X would be willing to sell to Division Y? $32 $24 $22 $8 Use the information above except assume Division X is working at full capacity; there is no excess capacity. What is the lowest transfer price per unit Division X should accept from Division Y for the component? $24 per unit $32 per unit $8 per unit $22 per unit Use the information below for questions 17 & 18. Jackson Industries has collected the following data for one of its products: How much is the direct materials quantity variance? $27, 940 unfavorable $66, 550 favorable $78, 550 unfavorable $78, 550 favorable How much is the direct materials price variance? $1, 900 favorable $1, 900 unfavorable $1, 750 favorable $1, 750 unfavorable When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of workers. The new workers were paid $25 per hour, worked a total of 7, 500 hours, and produced 2,000 cars. budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car. What is the direct labor rate for the Rolls-Royce division? $4,000 unfavorable $15,000 favorable Division Y wants to buy the component they use in these finished product from Division X. The variable costs of Division Y will be incurred whether it buys the component from Division X or from an outside supplier. Assume Division X has excess capacity. Division Y can buy the component from an outside supplier for $32 per unit. What is the lowest transfer price per unit at which Division X would be willing to sell to Division Y? $32 $24 $22 $8 Use the information above except assume Division X is working at full capacity; there is no excess capacity. What is the lowest transfer price per unit Division X should accept from Division Y for the component? $24 per unit $32 per unit $8 per unit $22 per unit Use the information below for questions 17 & 18. Jackson Industries has collected the following data for one of its products: How much is the direct materials quantity variance? $27, 940 unfavorable $66, 550 favorable $78, 550 unfavorable $78, 550 favorable How much is the direct materials price variance? $1, 900 favorable $1, 900 unfavorable $1, 750 favorable $1, 750 unfavorable When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of workers. The new workers were paid $25 per hour, worked a total of 7, 500 hours, and produced 2,000 cars. budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car. What is the direct labor rate for the Rolls-Royce division? $4,000 unfavorable $15,000 favorable
