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The Uniforms Division of Baseball Company has just revised its actual cost data for 2016. Uniforms Division transfers goods to the Sport Division. Sport
The Uniforms Division of Baseball Company has just revised its actual cost data for 2016. Uniforms Division transfers goods to the Sport Division. Sport Division can buy the same goods in the open market for $122 each. Uni- forms's new cost data are as follows: $ 40 Direct materials Direct labor Variable overhead 30 10 16 Fixed overhead Variable selling expenses Fixed selling and administrative expenses Total costs Desired return 12 $114 20 $134 Sales price Current production is 200,000 units, and the Uniforms Division has a capacity of 300,000 units. Required: What is the lowest price the Uniforms Division should charge for the internal transfers of its goods? b. What is the highest price the Sport Division should pay for the units?29. a.
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a The total cost per unit of the Uniform Division is 114 per un...Get Instant Access to Expert-Tailored Solutions
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