Solution:
Definition of goal congruence and the calculations for goal-congruent transfer price are as under:
InterGlobal Industries Intelivvai ustries is a diversified corporation with separate operating di...
InterGlobal Industries InterGlobal Industries is a diversified corporation with separate operating divisions. Each division's performance is evaluated on the basis of profit and return on investment The Air Comfort Division manufactures and sells air-conditioner units. The coming year's budgeted income statement, which follows, is based upon a sales volume of 15,000 unites. AIR COMFORT DIVISION Budgeted Income Statement (In thousands) Per Unit $400 Total S6,000 S1,050 Sale revenue... Manufacturing costs: Compressor Other direct material Direct labor Variable overhead. Fixed overhead....
Fact Pattern: National Industries is a diversified corporation with separate and distinct operating divisions. Each division’s performance is evaluated on the basis of total dollar profits and return on divisional investment. The WindAir Division manufactures and sells air-conditioning units. The coming year’s budgeted income statement, based upon a sales volume of 15,000 units, appears below. WindAir Division Budgeted Income Statement For the Next Fiscal Year Per Total Unit (000 omitted) Sales revenue $400 $6,000 Manufacturing costs Compressor $ 70 $1,050 Other...
Fact Pattern: National Industries is a diversified corporation with separate and distinct operating divisions. Each division’s performance is evaluated on the basis of total dollar profits and return on divisional investment. The WindAir Division manufactures and sells air-conditioning units. The coming year’s budgeted income statement, based upon a sales volume of 15,000 units, appears below. WindAir Division Budgeted Income Statement For the Next Fiscal Year Per Total Unit (000 omitted) Sales revenue $400 $6,000 Manufacturing costs Compressor $ 70 $1,050 Other...
13. Plish Company manufactures only one type of washing machine and has two divisions, the Compressor Division, and the Fabrication Division. The Compressor Division manufactures compressors for the Fabrication Division, which completes the washing machine and sells it to retailers. The Compressor Division "sells" compressors to the Fabrication Division. The market price for the Fabrication Division to purchase a compressor is $42.00. (Ignore changes in inventory.) The fixed costs for the Compressor Division are assumed to be the same over...
Actual direct manufacturing labor wage rate 4. Standard quantity of direct materials allowed (in pounds) 5. Actual quantity of direct materials used (in pounds) 6. Actual quantity of direct materials purchased in pounds) 7. Actual direct materials price per pound Req in nvene 7-37 Comprehensive variance analysis review. Blaumvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorption costing manufacturing costs per product are: Oprating Material Variable costs Fixed costs 2...
Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division Consolidated monitors its divisions on the basis of both unit contribution and return on investment (ROI), with investment defined as average operating assets employed. All investments in operating assets are expected to earn a minimum return of 12% before income taxes Relgis's cost of goods sold is considered to be entirely variable, however, its administrative expenses do not depend on volume Selling expenses...
NTM Corporation was formed on January 1, 2013 and the company has been growing steadily since inception. The Chief Financial Officer, Myrna Snowflake, has hired you to perform some cost-volume- profit analysis to determine what changes can be made to increase profitability. She has provided you with the following traditional income statement for 2017. Total sales volume for 2017 was 600,000 units. The relevant range for NTM Corporation is 400,000 – 700,000 units. Requirements: Total sales volume for 2017 was...
Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division Consolidated monitors its divisions on the basis of both unit contribution and return on investment (RON, with investment defined as average operating assets employed. All investments in operating assets are expected to eam a minimum return of 13% before income taxes. Reigis's cost of goods sold is considered to be entirely variable, however, its administrative expenses do not depend on volume Selling expenses...
Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division. Consolidated monitors its divisions on the basis of both unit contribution and return on investment (ROI), with investment defined as average operating assets employed. All investments in operating assets are expected to earn a minimum return of 10% before income taxes. Reigis's cost of goods sold is considered to be entirely variable; however, its administrative expenses do not depend on volume. Selling expenses...
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $27,000, and the common fixed expenses were $58,000. The contribution margin ratio for Product Q was 40%. Its sales were $143.000, and its segment margin was $50,000. If the contribution margin for Product P was $48,000, the segment margin for Product P was: Multiple Choice $35,000 O $50,000 O O "ounle Corporation has two divisions: the South Division and the West Division. The corporation's...