Homework: Chapter 22 Homework Score: 0 of 1 pt E22-21 (similar to) Save 1 of 3 (0 complete) HW Score: 0%, 0 of 3 pts Question Help Amen Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and is sold to customers at a price of $165 per unit. The mining division is currently required by Ame to transfer its total y any output of 220 000 units o toldi e to the metals division at 130% of full manufacturing cost unlimited quan es toldine can be purchased and sold on the outside market at $85 per unit The following table gives the manufacturing cost per unit in the mining and metals divisions for 2014 (Click to view the data.) Read the requirements. Requirement 1 al ulate the operating incomes for the mining and me als div ons the 220,000 units of told ne transferred under the following transfer pric ng methods a market price and b 130% c full manufacturing cost. Begin with calculating the operating income for the mining division under each methcd by entering the appropriate amounts, then complete the table for the metal division. Method A Method B Data Table Mining division Division revenue Cost: Metals Division $9 23 40b Mining Division S14 Division variable cost material cost Direct manufacturing labor cost Manufacturing overhead cost Total manufacturing cost per unit 16 30a Division fixed cost Total division cost a Manufacturing overhead costs in the mining division are 40% fixed and 60% variable. Division operating income b Manufacturing overhead costs in the metals division are 45% fixed and 55% 1. Calculate the operating incomes for the mining and metals divisions for the 220,000 units Print Done of toldine transferred under the following transfer-pricing methods: (a) market price and (b) 130% of full manufacturing cost Suppose Amen rewards each division manager with a bonus, calculated as 1% of division operating income (if positive). What is the amount of bonus that will be paid to each division manager under the transfer-pricing methods in requirement 1? Which transfer-pricing method will each division manager prefer to use? 2. Enter any number in the edit fields and then cl Check Answer 3. What arguments would Bryce Jones, manager of the mining division, make to support the transfer-pricing method that he prefers? Homework: Chapter 22 Homework Score: 0 of 1 pt E22-21 (similar to) Save 1 of 3 (0 complete) HW Score: 0%, 0 of 3 pts Question Help Amen Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and is sold to customers at a price of $165 per unit. The mining division is currently required by Ame to transfer its total y any output of 220 000 units o toldi e to the metals division at 130% of full manufacturing cost unlimited quan es toldine can be purchased and sold on the outside market at $85 per unit The following table gives the manufacturing cost per unit in the mining and metals divisions for 2014 (Click to view the data.) Read the requirements. Requirement 1 al ulate the operating incomes for the mining and me als div ons the 220,000 units of told ne transferred under the following transfer pric ng methods a market price and b 130% c full manufacturing cost. Begin with calculating the operating income for the mining division under each methcd by entering the appropriate amounts, then complete the table for the metal division. Method A Method B Data Table Mining division Division revenue Cost: Metals Division $9 23 40b Mining Division S14 Division variable cost material cost Direct manufacturing labor cost Manufacturing overhead cost Total manufacturing cost per unit 16 30a Division fixed cost Total division cost a Manufacturing overhead costs in the mining division are 40% fixed and 60% variable. Division operating income b Manufacturing overhead costs in the metals division are 45% fixed and 55% 1. Calculate the operating incomes for the mining and metals divisions for the 220,000 units Print Done of toldine transferred under the following transfer-pricing methods: (a) market price and (b) 130% of full manufacturing cost Suppose Amen rewards each division manager with a bonus, calculated as 1% of division operating income (if positive). What is the amount of bonus that will be paid to each division manager under the transfer-pricing methods in requirement 1? Which transfer-pricing method will each division manager prefer to use? 2. Enter any number in the edit fields and then cl Check Answer 3. What arguments would Bryce Jones, manager of the mining division, make to support the transfer-pricing method that he prefers
