Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $205

image text in transcribed

Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $205 in variable costs, plus the cost of the widget, to manufacture. Fern's variable costs are $80 per widget, and fixed manufacturing costs are applied at a rate of $47 per widget. Widgets sell on the open market for $125 each. Evergreen's policy is that internal transfers will be made at variable cost plus 20%. If Bark purchases the widgets from Fern, what will be the transfer price? Multiple Choice O $150.00 $152.40 $96.00

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

Governmental and Nonprofit Accounting

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

10th edition

132751267, 978-0132751261

More Books

Students also viewed these Accounting questions

Question

What are decision rules? What is their purpose? LO.1

Answered: 1 week ago