What is the expected transfer price

Assignment Help Cost Accounting
Reference no: EM132547939

Corning Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Division and the Manufactured Housing Division. Each divisional manager is evaluated on the basis of ROI.

The Appliance Division produces a small automatic dishwasher that the Manufactured Housing Division can use in one of its models. Appliance can produce up to 20,000 of these dishwashers per year. The variable costs of manufacturing the dishwashers are $98. The Manufactured Housing Division inserts the dishwasher into the model house and then sells the manufactured house to outside customers for $73,000 each. The division's capacity is 4,000 units. The variable costs of the manufactured house (in addition to the cost of the dishwasher itself) are $42,600.

Question 1: Assume that the Appliance Division is operating at 75 percent capacity. The Manufactured Housing Division is currently buying 4,000 dishwashers from an outside supplier for $290 each. Assume that any joint benefit will be split evenly between the two divisions. What is the expected transfer price?

Reference no: EM132547939

Questions Cloud

What is the static - budget variance of variable costs : What is the static - budget variance of variable costs? Lincoln Corporation used the following data to evaluate their current operating system
Prepare disclosures journal entries farmers products make : Prepare the disclosures and/or journal entries Farmers Products should make in preparing its December 31, 2016, financial statements
What is the actual variable overhead cost : What is the actual variable overhead cost? Zitrik Corporation manufactured buckets during February. The variable overhead cost allocation base is $5.25
Compute the amount of Raymond Mosss bonus : Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of any income, Compute the amount of Raymond Mosss bonus
What is the expected transfer price : Corning Company has a decentralized,Assume that any joint benefit will be split evenly between the two divisions. What is the expected transfer price?
Electronically and mechanically enhanced human : Should We Reject the Transhumanist Goal of the Genetically Electronically and Mechanically Enhanced Human Being?"
Estimated useful life of each project is : The Roll Company Ltd,Estimated useful life of each project is. Which machine should the company select? Give reasons for your answer.
Paleobotanical significance of terms : Briefly identify and describe the evolutionary/paleobotanical significance of these terms/taxa:
Distinguish ferns from sphenopsids : Please answer in full not just one feature. What features distinguish Ferns from Sphenopsids?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Discuss for how uncertainty is related to earnings quality

In our real life, the value of assets cannot be estimated perfectly because we cannot be certain for the future cash flows that the asset generates, and also we cannot be certain for the discount rate.

  Prepare the income statement and statement of changes

Prepare the income statement and statement of changes in stockholders

  Evaluate valdezs inventory turnover trend

Compute the inventory turnover and the number of days' sales in inventory for the years 2006-2008. Use average inventory in your calculations.

  Prepare the information to prepare adjusting entries

Use the information to prepare adjusting entries as of December - Prepare the information to prepare adjusting entries as of December 31, 2015.

  How much can notes payable increase

The company plans to raise funds in the short-term debt market and invest the entire amount in additional inventory. How much can notes payable increase without the current ratio falling below 1.50?

  What can you conclude from these ratios

Calculate the 2013 profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can you say about these ratios?

  What is maximum price that hanson would be willing to pay

What is the maximum price that Hanson would be willing to pay for just enough additional time in Process No. 1 to produce one more unit of Zeta?

  What is the breakeven point in sales units

What is the breakeven point in sales units and sales dollars and how many units must Write Company sell to earn a profit of $240,000 per year?

  What are the variable expenses per unit

Lindon Company is the exclusive distributor for an automotive product that sells for $45 per unit and has a CM ratio of 35%. The company's fixed expenses are $330,750 per year. The company plans to sell 22,000 units this year.

  Questionthe amortization of bond discounta increases the

questionthe amortization of bond discounta increases the cash paid to bondholders for interestbnbsp results in bond

  Determine the patent book value on december

Record the year-end adjusting journal entry for patent amortization on December 31, 2006. Determine the patent book value on December 31, 2006.

  Calculate the cost of goods sold for the period

Calculate the cost of goods sold for the period

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd