Homework Answers
Transfer price = Variable cost + 30 percent
= $7 per unit + ($7 per unit * 30%)
= $9.1 per unit
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Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $4.00 per unit, full cost is $5.00. The component sells on the open marke for $9.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West...
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.50 per unit; full cost is $2.04. The component sells on the open market for $4.95. (Enter your answers in 2 decimal places.) Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? Lowest price Assuming Division East has excess capacity, what is the highest price that...
Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partially completed components to...
Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partially completed components to the electrical division at a predetermined transfer price. The assembly division's standard variable production cost per unit is $550. This division has spare capacity, and it could sell all its components to outside buyers at $680 per unit in a perfectly competitive market. Required: a) Determine a transfer price using the general rule.(2 marks) b) How would the transfer price change if the assembly...
ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center....
ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center. The Wheel division, located in Nambia, produces unicycle wheels and can choose to sell wheels on either the open market at $30 per wheel, or sell them to the Assembly division. The Assembly division, located in Elbonia, assembles unicycles and can choose to either buy wheels from the Wheel division or purchase wheels on the open market. Wheel Assembly Cost per unit...
ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center....
ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center. The Wheel division, located in Nambia, produces unicycle wheels and can choose to sell wheels on either the open market at $30 per wheel, or sell them to the Assembly division. The Assembly division, located in Elbonia, assembles unicycles and can choose to either buy wheels from the Wheel division or purchase wheels on the open market. Wheel Assembly Cost per unit...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a predetermined transfer price. Standard variable manufacturing cost per unit in the Fabrication Division is $350. At the present time, this division is working to capacity. Fabrication estimates that the units it produces could be sold on the external market for $580. The product under consideration is viewed as a commodity-type product, with no differentiating features or characteristics Required: 2. Based...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a predetermined transfer price. Standard variable manufacturing cost per unit in the Fabrication Division is $410. At the present time, this division is working to capacity. Fabrication estimates that the units it produces could be sold on the external market for $580. The product under consideration is viewed as a commodity-type product, with no differentiating features or characteristics. Required: 2. Based...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a predetermined transfer price. Standard variable manufacturing cost per unit in the Fabrication Division is $440. At the present time, this division is working to capacity. Fabrication estimates that the units it produces could be sold on the external market for $635. The product under consideration is viewed as a commodity-type product, with no differentiating features or characteristics. Required: 2. Based...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $4.00 per unit, full cost is $5.00. The component sells on the open marke for $9.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.50 per unit; full cost is $2.04. The component sells on the open market for $4.95. (Enter your answers in 2 decimal places.) Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? Lowest price Assuming Division East has excess capacity, what is the highest price that...
Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partially completed components to the electrical division at a predetermined transfer price. The assembly division's standard variable production cost per unit is $550. This division has spare capacity, and it could sell all its components to outside buyers at $680 per unit in a perfectly competitive market. Required: a) Determine a transfer price using the general rule.(2 marks) b) How would the transfer price change if the assembly...
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a predetermined transfer price. Standard variable manufacturing cost per unit in the Fabrication Division is $350. At the present time, this division is working to capacity. Fabrication estimates that the units it produces could be sold on the external market for $580. The product under consideration is viewed as a commodity-type product, with no differentiating features or characteristics Required: 2. Based...
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