Use the following information for questions 15 & 16. Division Y wants to buy the component they use in their finished product from Division X. The variable costs of Division Y will be incurred whether it buys the component from Division X or from an outside supplier. Assume Division X has excess capacity. Division Y can buy the component from an outside supplier for $32 per unit. What is the lowest transfer price per unit at which Division X would be willing sell to Division Y? A) $32 B) $24 C) $22 D) $8 Use the information above except assume Division X is working at full capacity: there is no excess capacity. What is the lowest transfer price per unit Division X should accept from Division Y for the component? A) $24 per unit B) $32 per unit C)$8 per unit D) $22 per unit Use the information below for questions 17 & 18. Jackson Industries has collected the following data for one of its products: How much is the direct materials quantity variance? A) $27,940 unfavorable B) $66,550 favorable C) $78,550 unfavorable D) $78,550 favorable How much is the direct materials price variance? A) $1,900 favorable B) $1,900 unfavorable C) $1,750 favorable D) $1,750 unfavorable When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $25 per hour, worked a total of 7,500 hours, and produced 2,000 cars. BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car. What is the direct labor rate variance for the Rolls-Royce division? A) $15,000 unfavorable B) $4,000 unfavorable C) $4,000 favorable D) $15,000 favorable