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Question 5 (3 points) Framework manufactures graduation picture frames. Dept A manufactures the glass piece; and, Dept B builds and sells the completed frame.
Question 5 (3 points) Framework manufactures graduation picture frames. Dept A manufactures the glass piece; and, Dept B builds and sells the completed frame. Dept A sells glass pieces for each frame to Dept B. The market price for Dept B to purchase the glass piece for each frame from outside suppliers is $205.00. The fixed costs for Dept A and B will not change between 24300 and 51900 glass pieces. The total fixed costs for Dept A are $64800.00. The total fixed costs for Dept B are $29000.00. Dept A cost per glass piece: Direct materials $39.00 Direct labour $37.00 Variable overhead $36.00 Dept B costs per completed picture frame: Direct materials $30.00 Direct labour $40.00 Variable overhead $46.00 Assume the transfer price for a glass piece is 140% of total costs of Dept A and 26500 glass pieces are produced and transferred to Dept B, what is Dept A's operating income? Round your final answer to the nearest whole number (integer). Round interim calculations to 3 decimal points. Do not include any dollar signs, percentage % signs, commas, decimal places and/or spaces in your answer. Your answer should only include numbers. For example, if the correct answer is 1021, you should enter 1021 as your answer. If you enter $1021 or 1,021 or 1 021 or $1021.00, your will be marked wrong. For negative numbers, use a negative sign before the number e.g. -1021.
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