Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labour-hours each month and produce 7800 robes. The standard costs associated with this level of production are as follows:

	Total		Per Unit of Product
Direct materials	$	167232	$ 21.44
Direct labour	$	28080	3.60
Variable manufacturing overhead (based on direct labour-hours)	$	2340	0.30
			$ 25.34

During April, the factory worked only 730 direct labour-hours and produced 7900 robes. The following actual costs were recorded during the month:

	Total		Per Unit of Product
Direct materials (26860 yards)	$	161160	$ 20.40
Direct labour	$	30020	3.80
Variable manufacturing overhead	$	15800	2.00
			$ 26.20

At standard, each robe should require 3.2 yards of material. All of the materials purchased during the month were used in production.

Required:

1.

Compute the materials price and quantity variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.)

Materials price variance	$	F
Materials quantity variance	$	U

2.

Compute the labour rate and efficiency variances for April:(Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

Labour rate variance	$	U
Labour efficiency variance	$	F

3.

Compute the variable manufacturing overhead rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.)

Variable overhead rate variance	$	U
Variable overhead efficiency variance	$	n/r

2.

award: 0 out of 11.00 points

Stanco, Inc., is a decentralised organization with five divisions. The companys Electronics Division produces a variety of electronics items, including an XL5 circuit board. The division (which is operating at capacity) sells the XL5 circuit board to regular customers for $14.80 each. The circuit boards have a variable production cost of $8.45 each.

The companys Clock Division has asked the Electronics Division to supply it with a large quantity of XL5 circuit boards for only $8.90 each. The Clock Division, which is operating at only 60% of capacity, will put the circuit boards into a timing device that it will produce and sell to a large oven manufacturer. The cost of the timing device being manufactured by the Clock Division follows:

XL5 circuit board (desired cost)	$	8.90
Other purchased parts (from outside vendors)		33.00
Other variable costs		21.30
Fixed overhead and administrative costs		13.00
Total cost per timing device	$	76.20

The manager of the Clock Division feels that she cant quote a price greater than $76.45 per timing device to the oven manufacturer if her division is to get the job. As shown above, in order to keep the price at $76.45 or less, she cant pay more than $8.90 per unit to the Electronics Division for the XL5 circuit boards. Although the $8.90 price for the XL5 circuit boards represents a substantial discount from the normal $14.80 price, she feels that the price concession is necessary for her division to get the oven manufacturer contract and thereby keep its core of highly trained people.

The company uses return on investment (ROI) to measure divisional performance.

Required:
1.	Assume that you are the manager of the Electronics Division.

a.	What is the minimum transfer price you will charge to supply the XL5 circuit boards to the Clock Division? (Round your answer to 2 decimal places.)

Minimum transfer price

$

b.	Would you recommend that your division supply the XL5 circuit boards to the Clock Division for $8.90 each as requested?
	Yes

2.	Calculate the net positive effect on the company's profit per device if the Electronics Division is required to supply the Clock Division with the circuit boards for $8.90 each? (Round your answer to 2 decimal places.)

Net positive effect

$ per device

3.	In principle, within what range would that transfer price lie? (Round your answers to 2 decimal places.)

The transfer price can be a lowest of $ and a highest of $ .