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managerial accounting The following information applies to the questions displayed below.] Clearview Window Company manufactures windows for the home-building industry. The window frames are produced
managerial accounting
The following information applies to the questions displayed below.] Clearview Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company's best-selling product is a three-by-four-foot, doublepaned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales windows exhibit perfect competition The standard variable cost of the window is detailed as follows: price for a frame is $165. The Glass Division sells its finished windows for $390. The markets for both frames and finished Frame Division $ 31 40 Glass Division Direct material Direct labor Variable overhead Total 69* 31 69 69 $140 $169 Not including the transfer price for the frame. Assume that there is no excess capacity in the Frame Division. Required 1-a. Use the general rule to compute the transfer price for window frames. 1-b. Calculate the transfer price if it is based on standard variable cost with a 10 percent markup. 1-a. Transfer price 1-b. Transfer price CStep by Step Solution
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