Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me to fulfill requirements 1-3. following costs per tire: (Click the icon to view the costs and additional information.) Read the requirements. what

image text in transcribed

please help me to fulfill requirements 1-3.

following costs per tire: (Click the icon to view the costs and additional information.) Read the requirements. what is the lowest acceptable transfer price? What is the highest acceptable transfer price? (Assume the $5 includes only the variable portion of conversion costs.) Requirements More info 1. Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Greely Motors has a negotiated transfer price policy, what is the lowest acceptable Direct material cost per tire $22 transfer price? What is the highest acceptable transfer price? Conversion costs per tire $5 (Assume the $5 includes only the variable portion of 2. If Greely Motors has a cost-plus transfer price policy of full absorption cost plus 30%, conversion costs.) what would the transfer price be? 3. If the Tire Division is currently producing at capacity (meaning that it is selling every single Fixed manufacturing overhead cost for the year is expected to total $153,000. The Tire Division tire it has the capacity to produce), what would likely be the fairest transfer price strategy expects to manufacture 51,000 tires this year. The fixed manufacturing overhead per tire is $3 to use? What would be the transfer price in this case? (\$153,000 divided by 51,000 tires). following costs per tire: (Click the icon to view the costs and additional information.) Read the requirements. what is the lowest acceptable transfer price? What is the highest acceptable transfer price? (Assume the $5 includes only the variable portion of conversion costs.) Requirements More info 1. Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Greely Motors has a negotiated transfer price policy, what is the lowest acceptable Direct material cost per tire $22 transfer price? What is the highest acceptable transfer price? Conversion costs per tire $5 (Assume the $5 includes only the variable portion of 2. If Greely Motors has a cost-plus transfer price policy of full absorption cost plus 30%, conversion costs.) what would the transfer price be? 3. If the Tire Division is currently producing at capacity (meaning that it is selling every single Fixed manufacturing overhead cost for the year is expected to total $153,000. The Tire Division tire it has the capacity to produce), what would likely be the fairest transfer price strategy expects to manufacture 51,000 tires this year. The fixed manufacturing overhead per tire is $3 to use? What would be the transfer price in this case? (\$153,000 divided by 51,000 tires)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

What are the pros and cons of two-tier pay system?

Answered: 1 week ago

Question

explain company-wide strategic planning and its four steps pg98

Answered: 1 week ago