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Materials used by Aro-Products Inc. in producing Division 3'sproduct are currently purchased from outside suppliers at a cost of$15 per unit. However, the same materials are available fromDivision 6. Division 6 has unused capacity and can produce thematerials needed by Division 3 at a variable cost of $12 per unit. A transfer price of $13 per unit is established, and 50,000 units of material are transferred with no reduction in Division 6'scurrent sales. How much would Division 3's income from operations increase?
a. $150,000
b. $50,000
c. $0
d. $100,000
Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?
Post Inc, had a receivable from a foregn customer that is payable in customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units
What is the major difference between the current ratio and the acid-test ratio? Why is inventory removed from the acid-test ratio?
Blue should have taken $455 and $3,636 cost recovery in2006 and 2007. On January 1, 2008, the asset was sold for $98,000. Calculate the gain or loss on the sale of the asset in2008.
Compute the amount of financial revenue that will be earned over the lease term and the manufacturer's profit that will be earned immediately by Aquarius
An alumnus of a small university donated $150,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 5 years after the money was donated.
Which of the following characteristics distinguishes a governmental or not-for-profit entity from a business entity?
Determine Tonya's adjusted gross income for the current year.
When a process costing system is used, explain how the normal and abnormal spoilages information influences on.
A change in an accounting estimate is: how much depreciation expense should the company recognize on December 31, 2010?
Identify drivers of those activities, bearing in mind that it must be easy to measure and record the values of the drivers. Do you see any potential benefit in implementing ABC for Netflix?
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