Homework Answers
When the selling division in an internal transfer has unsatisfied demand form outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is:-
The market price charged to outside customers
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When the selling division in an internal transfer has unsatisfied demand from outside customers for the...
James Manufacturing had the following information available for July: Actual Results 15,000 2 Flexible Budget Variance...
James Manufacturing had the following information available for July: Actual Results 15,000 2 Flexible Budget Variance Flexible Budget ? 2 Sales Activity Variance 3,0000 Master Budget 2 2 $18, 250F 2 Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,250 $102,000 2 $141,000 ? $ 9,750U 2 $ 48,000 $3,7507 $7,8000 $ 67,000 ? ? What was James's master budget sales revenue? Multiple Choice $195,000 $234,000 26 Which of the following statements isare) false? (A)...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) 270,000 $20 $ 12 $ 9 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 15,000 valves per year from an overseas supplier at a cost of $19 per valve 1. Assume that the Valve Division has ample idle capacity to...
2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speaker...
2. Assume the Audio Division is selling all of the speakers it
can produce to outside customers.
a. From the standpoint of the Audio Division, what is the lowest
acceptable transfer price for speakers sold to the Hi-Fi
Division?
b. From the standpoint of the Hi-Fi Division, what is the
highest acceptable transfer price for speakers acquired from the
Audio Division?
c. What is the range of acceptable transfer prices (if any)
between the two divisions? If left free to...
Division A makes a part that it sells to customers outside of the company. Data concerning...
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $ 94 Variable cost per unit $ 60 Total fixed costs $ 704,000 Capacity in units 44,000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $87 per unit and...
Division A makes a part that it sells to customers outside of the company. Data concerning...
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $76 Variable cost per unit $52 Total fixed costs $401,000 Capacity in units $26,000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $70 per unit and would substitute the...
Division A makes a part that sells to customers outside of the company. Data concerning this...
Division A makes a part that sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $75 Variable cost per unit $50 Total fixed costs $400,000 capcity in units 25,000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $70 per unit and would substitue the part...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 22,000 units of excess capacity. Selling Division currently sells the product for $80 per unit and Buying Division currently buys 22,000 units of the product from an outside source for $80 per unit. Variable costs of the product are $16, of...
Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells...
Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 22,000 units of excess capacity. Selling Division currently sells the product for $80 per unit and Buying Division currently buys 22,000 units of the product from an outside source for $80 per unit. Variable costs of the product are $16, of which $4 is the cost of selling the product...
Cor Products casa Valve Division that 31 Help Collyer Products Inc. has a Valve Division that...
Cor Products casa Valve Division that 31 Help Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Cheche 02-19 41 Capacity in units Selling price to outside customers on the intermediate market 230,eee Variable costs per unit $ 16 Fixed costs per unit (based on capacity) $ 10 $ 7 Print The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division...
Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows:...
Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Capacity in units 150,000 Selling price to outside customers on the intermediate market $ 18 Variable costs per unit $ 10 Fixed costs per unit (based on capacity) $ 7 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 15,000 valves per year from an overseas supplier at...
James Manufacturing had the following information available for July: Actual Results 15,000 2 Flexible Budget Variance Flexible Budget ? 2 Sales Activity Variance 3,0000 Master Budget 2 2 $18, 250F 2 Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,250 $102,000 2 $141,000 ? $ 9,750U 2 $ 48,000 $3,7507 $7,8000 $ 67,000 ? ? What was James's master budget sales revenue? Multiple Choice $195,000 $234,000 26 Which of the following statements isare) false? (A)...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) 270,000 $20 $ 12 $ 9 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 15,000 valves per year from an overseas supplier at a cost of $19 per valve 1. Assume that the Valve Division has ample idle capacity to...
2. Assume the Audio Division is selling all of the speakers it
can produce to outside customers.
a. From the standpoint of the Audio Division, what is the lowest
acceptable transfer price for speakers sold to the Hi-Fi
Division?
b. From the standpoint of the Hi-Fi Division, what is the
highest acceptable transfer price for speakers acquired from the
Audio Division?
c. What is the range of acceptable transfer prices (if any)
between the two divisions? If left free to...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 22,000 units of excess capacity. Selling Division currently sells the product for $80 per unit and Buying Division currently buys 22,000 units of the product from an outside source for $80 per unit. Variable costs of the product are $16, of...
Cor Products casa Valve Division that 31 Help Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Cheche 02-19 41 Capacity in units Selling price to outside customers on the intermediate market 230,eee Variable costs per unit $ 16 Fixed costs per unit (based on capacity) $ 10 $ 7 Print The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division...
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