Homework Answers
| Variable manufacturing cost per unit | $25 |
| Variable administrative cost per unit | $5 |
| Opportnity cost of transferring to Assembly division($100-$25-$5) | $70 |
| Transfer price to Assembly division | $100 |
| Assembly division's purchase price | $98 |
| Transfer price | $100 |
| Loss due to acqusition from Machining division | -$2 |
| Decrease in Profit(2,000 units*$2) | -$4,000 |
| So Option B is answer |
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The Machining Division is currently operating at capacity (2,000 units). Its sales and cost data are:...
The machining division of ITA International has a capacity of 2,000 units. Its sales and cost...
The machining division of ITA International has a capacity of 2,000 units. Its sales and cost data are: Selling price per unit $80 Variable manufacturing costs per unit 25 Variable selling costs per unit 3 Total fixed manufacturing overhead 183,200 The machining division is currently selling 1,800 units to outside customers, and the assembly division of ITA International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred...
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The machining division of ITA International has a capacity of 2,010 units. Its sales and cost...
The machining division of ITA International has a capacity of
2,010 units. Its sales and cost data are:
Selling price per unit
$
80
Variable manufacturing costs per
unit
30
Variable selling costs per
unit
3
Total fixed manufacturing
overhead
216,600
The machining division is currently selling 1,810 units to outside
customers, and the assembly division of ITA International wants to
purchase 400 units from machining. If the transaction takes place,
the variable selling costs per unit on the units...
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The Machining Division has a capacity of 2.000 . Its sales and cost data are: Selling price per unit Variable manufacturing costs per un Variable administrative costs per un Total fixed manufacturing overhead Total twed administrative costs $20,000 $5,000 The Machining Division is currently selling 1,000 units to outside customers, and the Assembly Division wants to purchase 300 units from Machining per unit on the units transferred to Assembly will be $2/unit, not $5 . What should be the transfer...
The machining division of ITA International has a capacity of
2,010 units. Its sales and cost data are:
Selling price per unit
$
80
Variable manufacturing costs per
unit
30
Variable selling costs per
unit
3
Total fixed manufacturing
overhead
216,600
The machining division is currently selling 1,810 units to outside
customers, and the assembly division of ITA International wants to
purchase 400 units from machining. If the transaction takes place,
the variable selling costs per unit on the units...
. The machung von has a capacity of 20,700 units and selling price per un h as variable manufacturing costs per unit of $14, variable selling costs of $7 g overhead of 78.000 current produces and sell 19.300 units to outside customers. The web de w e to buy 50 units from machining. If the t hers to the assembly division, two incur any are ng costs. The assembly vision is currently buying these units from an de company at...
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