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!
Perfumes Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre. The Bottle Division produces bottles that can be used by the Perfume Division. The Bottle Division's variable manufacturing cost per unit is $3.00 and shipping costs are $0.20 per unit. The Bottle Division's external sales price is $4.00 per unit. No shipping costs are incurred on sales to the Perfume Division. The Perfume Division can purchase similar bottles in the external market for $3.50. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Perfume Division.
Required:
Problem a) Using the general rule, determine the minimum transfer price.
Problem b) Assume the Bottle Division has no excess capacity and can sell everything produced externally. Would the transfer price change?
Problem c) Assume the Bottle Division has no excess capacity and can sell everything produced externally. What is the maximum amount Perfume Division would be willing to pay for the bottles?
Problem d) When is it more appropriate to use market-based transfer price rather than cost-based transfer price?
Assuming the Irrelevance Proposition holds, what is the market value of the firm after the recap? What is the market value of equity?
The Coastal Landscaping and Snow Removal company employs normal costing to assign overhead costs to firm's various jobs. Labor is charged to jobs at $25 per hour and for upcoming winter session, overhead is estimated at $200,000 for $10,000 hours ..
Make the company's direct materials budget and schedule of expected cash disbursement for materials for the upcoming fiscal year.
What is the amount of direct materials cost in the August 31st Work in process inventory account - Information on these measures of activity
Calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on the rates of activity consumed
Make an analysis of the costs and advise Manny on which option should be taken from a purely financial perspective? Labour for employees working directly
As a Management Accountant, what would be your advice to the company management during the COVID-19 pandemic when making budget decisions?
Calculate Actual number of direct labour hours incurred, Labour efficiency variance, Materials quantity variance, Fixed overhead budget variance
Calculate the total materials variance, Materials Price Variance and Materials Quantity Variance and whether there favorable, unfavorable or neither.
The JO Motel's general manager Mark, has completed the operations,Determine the amount of cash expected to be received during June 2019.
What is the value of reviewing residuals or the measures of error? How is it possible to identify additional or lurking variables by examining residuals?
Inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?
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