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Exercise 8-11 Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Fixed cost per unit Variable cost per unit Selling price per unit $5.20 $10.81 $34.55 Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) $ Minimum transfer price per unit LINK TO TEXT Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) $ Minimum transfer price Brief Exercise 9-6 For Roche Inc., variable manufacturing overhead costs are expected to be $21,050 in the first quarter of 2017, with $4,220 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,750 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year. ROCHE INC. Manufacturing Overhead Budget Quarter 1 Variable costs 2 3 4 Year $ $ $ $ $ $ $ $ $ $ Fixed costs Total manufacturing overhead Brief Exercise 9-8 North Company has completed all of its operating budgets. The sales budget for the year shows 50,140 units and total sales of $2,294,200. The total unit cost of making one unit of sales is $24. Selling and administrative expenses are expected to be $304,600. Interest is estimated to be $10,000. Income taxes are estimated to be $221,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017. NORTH COMPANY Budgeted Income Statement $ $ Exercise 11-6 Lewis Company's standard labor cost of producing one unit of Product DD is 3.7 hours at the rate of $12.9 per hour. During August, 40,600 hours of labor are incurred at a cost of $13.00 per hour to produce 10,800 units of Product DD. (a) Compute the total labor variance. Total labor variance $ (b) Compute the labor price and quantity variances. Labor price variance Labor quantity variance $ $ (c) Compute the labor price and quantity variances, assuming the standard is 4.1 hours of direct labor at $13.20 per hour. Labor price variance Labor quantity variance $ $