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anygoal [31]
3 years ago
11

Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The Hinge Division produces

and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $33, $21 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $48. The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (27,000 hinges) at a cost of $43. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first. What is the minimum transfer price from the Hinge Division to the Door Division?
Business
1 answer:
Luden [163]3 years ago
3 0

Answer:

Minimum transfer price = $21

Explanation:

<em>Transfer price is the price at which goods are exchange between branches or divisions of the same group</em>

<em>Where  a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows</em>

Minimum transfer price = Variable cost

Note that the fixed of $12 per unit (i.e 33-21) is irrelevant for this purpose, whether or not Hinges produces, it will be incurred either way.

It is worthy of note that there is no opportunity cost associated with any transfer to the Doors division because Hinges is currently having excess capacity.

Therefore, any offering price equal to or above the variable cost of $21 would be acceptable and optimize the group profit.

Hence, the minimum transfer price = $21

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Kicks corporation sells running shoes and during janurary they ran production machines for 20000 total hours and incurred 9000 i
Dafna11 [192]

Answer:

$0.3 per machine hour

Explanation:

The computation of the variable maintenance cost per machine hour using the high low method is shown below:

Variable cost per machine hour = (High maintenance cost - low maintenance  cost) ÷ (High machine hours - low machine hours)

= ($9,000 - $7,200) ÷ (20,000 machine hours - 14,000 machine hours)

= $1,800 ÷ 6,000 machine hours

= $0.3 per machine hour

7 0
3 years ago
According to Herzberg, when ________ are adequate, people won't be dissatisfied, but they will also not be satisfied. motivation
Anastasy [175]

Answer:

The correct answer is letter "B": hygiene factors.

Explanation:

According to American psychologist Frederick Herzberg (1923-2000) in his Motivation-Hygiene Theory -<em>also known as Two Factor Theory</em>- some factors lead to individuals' satisfaction and dissatisfaction at work. Achievement, recognition, and growth are examples of factors that lead to satisfaction and policies, supervision, salaries or security influence dissatisfaction.

Though, <em>solving problems related to dissatisfaction will not make employees satisfied. Herzberg concluded that the opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction.</em>

6 0
3 years ago
The Cozy Chair Company believes it can sell 200 chairs at $200 per chair, or 300 chairs at $150 per chair. Using the midpoint fo
rusak2 [61]

Answer:

1.4

Explanation:

Given that

Q1 = 200

P1 = $200

Q2 = 300

P2 = $ 150

Recall that

Midpoint formula = Q2 - Q1/(Q2 + Q1)/2 ÷ P2 - P1/(P2 + P1)/2

= 300 - 200/(300 + 200)/2 ÷ 150 - 200/(150 + 200)/2

= 100/250 ÷ -50/175

= 0.4 ÷ 0.285

= 1.4

4 0
3 years ago
Read 2 more answers
Swifty Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each produc
Katen [24]

Answer:

$10.60 per direct labor hour

Explanation:

Calculation for the overhead rate

First step is to calculate the Direct labor hours for car wheels using this formula

Direct labor hours for car wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for car wheels= 40,000 * 1

Direct labor hours for car wheels= 40,000 hours

Second step is to calculate Direct labor hours for Truck wheels using this formula

Direct labor hours for Truck wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for Truck wheels= 10,000 * 3

Direct labor hours for Truck wheels= 30,000 hours

Third step is to calculate the Total direct labor hours

Total direct labor hours = 40,000 + 30,000

Total direct labor hours=70,000 hours

Now let calculate the Overhead rate using this formula

Overhead rate = Total estimated overhead costs / Total direct labor hours

Overhead rate= $742,000 / 70,000 hours

Overhead rate= $10.60 per direct labor hour

Therefore Overhead rate is $10.60 per direct labor hour

8 0
3 years ago
Oliver needs to purchase new equipment for his team in order to complete his
noname [10]

Answer:

The correct answer is C

Explanation:

Constraint is the term which is defined as something which will controls or limits the person or an individual what the person can do. Their decision depends or grounded on the constraint.

In this case,Oliver wants to buy the new equipment in order to complete the project. The budget is depend or grounded on the grant awarded by the company. So, it is an example of a constraint project.

5 0
3 years ago
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