User Account

All Pages

What is the minimum transfer price the burnaby division

Assignment Help Managerial Accounting
Reference no: EM132517077

The Burnaby Division of Columbia Ltd. produces and sells component parts. Its variable costs per unit are $80 for direct materials, $32 for direct labour and $18 for variable factory overhead. It currently can sell it components on the outside market at a price of $165/unit. Fixed overhead costs are $22 per unit based on a denominator volume of 180,000 units.

Question 1) The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150. Assuming Burnaby Division has idle capacity, what is the transfer price the Burnaby Division should agree to accept?

Question 2) The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150. Assuming Burnaby Division has no idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?

Question 3) The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150. The Burnaby Division will save $3 per unit of direct materials costs for the components manufactured for the Surrey Division. Assuming Burnaby Division has no idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?

Question 4) The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component. The Burnaby Division will save $3 per unit of direct materials costs for the components manufactured for the Surrey Division. Assuming Burnaby Division has idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?

Reference no: EM132517077

Questions Cloud

How programming-software could play part in resolving : Now think about how programming/software could play a part in resolving one or more of the problems being faced during this crisis.
What is the economic order quantity for garry golf ball : Purchasing at the EOQ recommended level, how many deliveries will be made to Garry's Golf Supplies during each time period?
Cloud computing-cloud security myths : Use at least three sources. Include at least 3 quotes from your sources enclosed in quotation marks and cited in-line by reference to your reference list
How can you use principals in public safety management : Submit a ONE Page Reaction Paper on this timeless video regarding Leadership and Decision-Making. How can you use some of these principals in Public Safety.
What is the minimum transfer price the burnaby division : Assuming Burnaby Division has no idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?
John dewey philosopher basic principles of pragmatism : What is PRAGMATISM according to John Dewey Philosopher Basic principles of pragmatism?
What do you think the future holds for the topic : After completing the readings, discussions, and activities, which topic did you find the most interesting, concerning, fascinating alarming? Was there a topic.
Determine the residual income for each division : Determine the residual income for each division. Management has established a minimum rate of return for invested assets of 11%.
Drive organizational strategy and is strategy : Why is it important for business strategy to drive organizational strategy and IS strategy? What might happen if the business strategy was not the driver?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Bella beverages inc - swot analysis and qualitative analysis

complete with analysis and recommendations as to the strategic direction the company should take to address their stagnant performance and to improve

  Prepare journal entries for these transactions

Johnson Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred

  Study the information given below and answer the following

study the information given below and answer the following questions1.1should retech limited accept or reject the

  What effect to depreciation in straight-line method

What effect to depreciation (straight-line method), with a useful life of 4 years, no residual value, and an expected total income yield of $25,300, is

  How much is budgeted sales revenue for the third quarter

What is the total amount to be budgeted for direct labor for the month - What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

  Prepare a balance sheet without cash

Prepare an Income Statement. After you are completed, a corrected Income Statement should be completed by your spreadsheet automatically with only a change in any of the assumptions that will be within spreadsheet one.

  How much should net operating income increase

$75 000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change?

  Journalize the transactions of july 5

Journalize the transactions of July 5, November 3, and December 10 and what is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

  Record the opening balances and the transactions for January

BBM205/05 Business Accounting Assignment, Wawasan Open University, Malaysia. Record the opening balances and the transactions for the month of January

  Prepare a production report for the six months

Prepare a Production Report for the six months ended 30 June 2013 for Melody Instruments Co, Ltd - Estimated annual overhead and direct labour costs for 2013 are $150,000 and $200,000 respectively.

  Calculate the profit ability of the johnson brands account

Calculate the profit ability of the Johnson Brands account.

  Should bernard company accept the outside company

Should Bernard Company accept the outside company's offer? Why or why not? Show supporting computations. Bernard Company manufactures 20,000 units of part A8

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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