Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking for the drop down options formulas, market price etc. All requirements. Assume the Small Components Division of Martin Manufacturing produces a video card used

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Looking for the drop down options formulas, market price etc. All requirements.

image text in transcribed
image text in transcribed
Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's - ed between the divisions of the company, what variable selling expenses pertain to outside conversion costs direct materials plus variable manufacturing costs market price sale price variable costs the Small Components Division's Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of Requirement 4. If the company's policy requires that all in-house transfers must be priced at full Choose from any list or enter any number in the input fields and then continue to the next question. Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. Requirement 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. The lowest acceptable transfer price for the divisions is the Small Components Division's $ Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of $ Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 12%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $2.00 per unit. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) ? Choose from any list or enter any number in the input fields and then continue to the next question ssume the Small Components Division of Martin Manufacturing produces a video card used in the ssembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price Market Price x 1.22 Variable Cost ling expenses on internal Variable Cost x 1.22 of the full absorption cost (Variable Cost + Fixed MOH Cost) le that the fixed 1 (Variable Cost + Fixed MOH Cost) x 1.22 eased production resulting (Variable Cost + Fixed MOH Cost + Variable Selling Expense) x 1.22 Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Choose from any list or enter any number in the input fields and then continue to the next question assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Choose from any list or enter any number in the input fields and then continue to the next question More Info The division's manufacturing costs and variable selling expenses related to the video card are as follows: Cost per unit Direct materials $ 8.00 Direct labor $ 10.00 $ 9.00 Variable manufacturing overhead Fixed manufacturing overhead (at current production level) Variable selling expenses $ 7.00 $ 6.00 The Computer Division of Martin Manufacturing can use the video card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is $34 regardless of whether the video card is produced by Martin Manufacturing or another company. Print Done The transfer price that would be used is $ Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 22%, what transfer price would be used? Assume that the compan does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Choose from any list or enter any number in the input fields and then continue to the next question. . Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's - ed between the divisions of the company, what variable selling expenses pertain to outside conversion costs direct materials plus variable manufacturing costs market price sale price variable costs the Small Components Division's Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of Requirement 4. If the company's policy requires that all in-house transfers must be priced at full Choose from any list or enter any number in the input fields and then continue to the next question. Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. Requirement 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. The lowest acceptable transfer price for the divisions is the Small Components Division's $ Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of $ Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 12%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $2.00 per unit. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) ? Choose from any list or enter any number in the input fields and then continue to the next question ssume the Small Components Division of Martin Manufacturing produces a video card used in the ssembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price Market Price x 1.22 Variable Cost ling expenses on internal Variable Cost x 1.22 of the full absorption cost (Variable Cost + Fixed MOH Cost) le that the fixed 1 (Variable Cost + Fixed MOH Cost) x 1.22 eased production resulting (Variable Cost + Fixed MOH Cost + Variable Selling Expense) x 1.22 Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Choose from any list or enter any number in the input fields and then continue to the next question assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Choose from any list or enter any number in the input fields and then continue to the next question More Info The division's manufacturing costs and variable selling expenses related to the video card are as follows: Cost per unit Direct materials $ 8.00 Direct labor $ 10.00 $ 9.00 Variable manufacturing overhead Fixed manufacturing overhead (at current production level) Variable selling expenses $ 7.00 $ 6.00 The Computer Division of Martin Manufacturing can use the video card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is $34 regardless of whether the video card is produced by Martin Manufacturing or another company. Print Done The transfer price that would be used is $ Requirement 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 22%, what transfer price would be used? Assume that the compan does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Transfer price The transfer price that would be used is $ Requirement 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 105% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions