DOW2 Online Teach X Benow.com/km/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Noten Printem Cost Transfer Price Mr. Bailey asks that you prepare Divisional Income Statements showing what 20 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a cost transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform a more audits during the year, and the Audit Division would pay the Tax Division's internal hourly rate of $50 per hour for the additional hours required, with the Tax Division selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees Complete the following Divisional Income Statements. If there is no amount or an amount is zero, entero BOR CPAs, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Compan Fees earned Audit fees (16 engagements) $1,200,000 $1,200,000 Tax fees (45 engagements) $708,750 708,750 Transfer pricing fees 40,000 40,000 , Expenses Variable: Audit hours provided by Audit Division (180,000) (180,000) Tax hours provided by Tax Division (236,250) (236,250) Excess capacity hours paid to salaried staff 0 Audit hours provided by Tax Division 40,000 40,000 Foxed expenses (50,000) (65,500) (115,500) Operating income before support department allocations 930,000 47,000 1,337,000 0 Check My Work Email Instructor Save and Exit Submit Assignment for Gre genow.com/in/a Printem Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter"0" BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company $1,200,000 Fees earned: Audit fees (16 engagements) Tax fees (45 engagements) Transfer pricing fees $1,200,000 708,750 $708,750 40,000 / 40,000 (180,000) (236,250) 0 (180,000) (236,250) 0 Expenses: Variable: Audit hours provided by Audit Division Tax hours provided by Tax Division Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income 40,000 V 40,000 (50,000) 930,000 (65,500) (115,500) 1,337,000 407,000 -90,000 x s 930,000 X Analysis Check My Work DOW2 Online Teach X Benow.com/km/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Noten Printem Cost Transfer Price Mr. Bailey asks that you prepare Divisional Income Statements showing what 20 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a cost transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform a more audits during the year, and the Audit Division would pay the Tax Division's internal hourly rate of $50 per hour for the additional hours required, with the Tax Division selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees Complete the following Divisional Income Statements. If there is no amount or an amount is zero, entero BOR CPAs, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Compan Fees earned Audit fees (16 engagements) $1,200,000 $1,200,000 Tax fees (45 engagements) $708,750 708,750 Transfer pricing fees 40,000 40,000 , Expenses Variable: Audit hours provided by Audit Division (180,000) (180,000) Tax hours provided by Tax Division (236,250) (236,250) Excess capacity hours paid to salaried staff 0 Audit hours provided by Tax Division 40,000 40,000 Foxed expenses (50,000) (65,500) (115,500) Operating income before support department allocations 930,000 47,000 1,337,000 0 Check My Work Email Instructor Save and Exit Submit Assignment for Gre genow.com/in/a Printem Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter"0" BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company $1,200,000 Fees earned: Audit fees (16 engagements) Tax fees (45 engagements) Transfer pricing fees $1,200,000 708,750 $708,750 40,000 / 40,000 (180,000) (236,250) 0 (180,000) (236,250) 0 Expenses: Variable: Audit hours provided by Audit Division Tax hours provided by Tax Division Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income 40,000 V 40,000 (50,000) 930,000 (65,500) (115,500) 1,337,000 407,000 -90,000 x s 930,000 X Analysis Check My Work