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daser333 [38]
4 years ago
5

Axelia Corporation has two​ divisions, Refining and Extraction. The​ company's primary product is Luboil Oil. Each​ division's c

osts are provided​ below: Extraction​: Variable costs per barrel of oil $ 12 Fixed costs per barrel of oil $ 4 Refining​: Variable costs per barrel of oil $ 27 Fixed costs per barrel of oil $ 30 The Refining Division has been operating at a capacity of 40 comma 200 barrels a day and usually purchases 26 comma 000 barrels of oil from the Extraction Division and 15 comma 900 barrels from other suppliers at $ 57 per barrel. What is the transfer price per barrel from the Extraction Division to the Refining​ Division, assuming the method used to place a value on each barrel of oil is 120​% of full​ costs? A. $ 82.80 B. $ 19.20 C. $ 46.00 D. $ 16.00
Business
1 answer:
serg [7]4 years ago
3 0

Answer:

Transfer price  = $19.2

Explanation:

The transfer price is the price at which goods are exchanged between the divisions of the same group.

The transfer price is stated to be 120% of the full cost

Full cost of extraction = Variable cost + fixed cost

                                      = $ 12 + $ 4 = $16 per barrel

Transfer price =   120%× $16 = $19.2

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3 years ago
The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred t
laila [671]

Answer:

Option (D) is correct.

Explanation:

Given that,

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Overhead  = $22,000

Cost incurred in finishing department:

= Beginning work in process + Cost transferred + Direct material + Direct labor + Overhead

= $4,000 + $47,000 + $15,000 + $46,000 + $22,000

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5 0
4 years ago
Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the comput
Kay [80]

Answer:

0.95 and 1.06

Explanation:

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So for each projects, it would be

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Total present value of

net cash flow (A)                                  $712,500                $848,000

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4 0
3 years ago
Which one of the following statements on the remuneration of the factors of production is true?
nordsb [41]

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Factors of production consists of the resources that are used to production to take place. They include land, labor, capital and the enterprise.

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3 years ago
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klasskru [66]

Answer:

involuntary

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