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!
Question - Armando Corporation consists of two manufacturing divisions: Crater Division and Dollar Division. The Crater Division manufactures and transfers partially processed components to the Dollar Division at a predetermined transfer price. It could also sell these components to outside buyers at $480 per unit in a perfectly competitive market. The standard cost per unit in each division is as follows: Crater Division Dollar Division Direct material $75 $160 Direct labour $80 $110 Manufacturing overhead $550* $360** *Manufacturing overhead is 60% variable and 40% fixed. **Manufacturing overhead is 45% variable and 55% fixed. The Dollar Division can sell the finished product to outsiders at $1,220 per unit.
Required -
a. What transfer price would you recommend if there was no outside market for the partially processed component and Crater Division had spare capacity? Does it matter if Crater Division is identified as a cost centre or a profit centre? Explain your answer.
b. Assume that the head office has intervened to dictate the transfer price at standard absorption cost plus a 10% mark up. The Dollar Division has been approached with a special order for 500 components at $1,020 each. From the perspective of Armando Corporation as a whole, should the special order be accepted or rejected? Explain and show the supporting calculations.
c. Advise whether is desirable for the head office to dictate the transfer price? Explain.
Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emerson of $43,800 Interest of 8% on each partner's capital.
Select a company that trades common stock on the NYSE. Identify and describe the information that is included in the stock trading reports for that stock
Assume that the company produces and sells 95,000 units during the year at a selling price of $9.45 per unit. Prepare a contribution format income statement.
JetBlue Airways Corporation (JBLU) operates passenger services throughout the United States. Compute the asset turnover
Baltimore Corporation authorized a 15% stock dividend when the market value was $20 per share. Calculate amount either debited or credited to earnings
casual comfort textiles corporation began january with a budget for 30000 hours of production in the weaving
What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts?
during its first year of operations maria rose set up roseland inc.and invested 25000 in the corporation. the company
muldur corporations comparative balance sheets are presented below.muldur corporationcomparative balance sheetsdecember
Determine the gross pay for the week. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent.
Define Measures Practic 1) Ten nails produced. Each one has five ways it can be defective. One or more defect makes the entire nail defective.
the following is an excerpt from a recent article discussingsupplier relationships with the big three north
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