Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Wattle Limited has two divisions: Industry and Consumer. The Industry Division transfers partially completed components to the Consumer Division at a predetermined transfer price. The Industry Division's standard variable production cost per unit is $500. This division could sell all its components to outside buyers at $650 per unit in a perfectly competitive market. The Consumer Division has a special offer of $740 for its product. The Consumer Division incurs variable costs of $260 in addition to the transfer price for the Industry Division's components. Both Industry and Consumer divisions currently have spare production capacity.
Required:
Problem a) Determine a transfer price using the general transfer pricing rule.
Problem b) Assume that the transfer price has been set at $530, is the Consumer Division manager likely to want to accept or reject the special offer? Why?
Problem c) Is the decision in the best interests of Wattle Limited as a whole? Explain.
What is the expected rate of return on the? investment? Also compute the standard deviation of the returns. What do the resulting numbers? represent?
Calculate the selling price per unit allowing for a profit of 15% of the- selling price. Direct materials 40 square meters at Rs. 5.30 per square meter
Journalize Goode and Devlin's (a) service revenue, (b) cash collections on account, (c) write-offs of uncollectible receivables, and (d) uncollectible-account
What would be the amount(s) related to the note that National would report in its statement of cash flows for the year ended December 31, 2011?
Compute the price and efficiency variances for Peterson Foods. Peterson Foods manufactures pumpkin scones. For January 2014, it budgeted to purchase
What are the benefits that the use of ABC in Bank of America will yield to the business performance? Discuss an Activity-Based Costing (ABC) system
How much was the flexible budget variance for sales revenue? How much was the flexible budget variance for Operating Income/(Loss)?
Actual overhead incurred was $175900. What would be the debit entry to the Work in Process Inventory account for July with respect to manufacturing overhead?
What is the gross profit for the period? Mom and Pop Shop provide the information for the period:-Operating expenses. Beginning inventory
As a shareholder in ZenTel, would you prefer that ZenTel executives agree to the payment of the "commission"? What should Steve Cheng do next?
Shanghi Exports, LTD produces wall mounts for flat panel television sets. The forecasted income statement for 2014 is as follows: Shanghai Exports, LTD Budgeted Income Statement
Explain how these two types of investments differ and why the associated cash flows are easier or more difficult to estimate.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd