Question
Presented below are data relating to labor for Concord Appliance Repair Shop. Repair-technicians' wages $162,400 Fringe benefits 44,800 Overhead 84,000 The desired profit margin per
Presented below are data relating to labor for Concord Appliance Repair Shop.
Repair-technicians' wages | $162,400 | |
Fringe benefits | 44,800 | |
Overhead | 84,000 |
The desired profit margin per hour is $18. The material loading charge is 60% of invoice cost. Concord estimates that 5,600 labor hours will be worked next year. If Concord repairs a dishwasher that takes 1.5 hours to repair and uses parts of $70, compute the bill for the job.
Total cost | $ |
2.) The fastener division of Bonita Fasteners manufactures zippers and then sells them to customers for $7.23 per unit. Its variable cost is $2.72 per unit, and its fixed cost per unit is $1.89. Management would like the fastener division to transfer 12,300 of these zippers to another division within the company at a price of $2.72. The fastener division could avoid $0.29 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.)
Minimum transfer price | $ |
(b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.)
Minimum transfer price | $ |
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