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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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Mauritiana uses standard costing for her shawls. She expects that a typical shawl should take 4 hours to​ produce, and the stand
PSYCHO15rus [73]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

She expects that a typical shawl should take 4 hours to​ produce, and the standard wage rate is $ 10.00 per hour. An average shawl uses 12 skeins of wool. Marina shops around for good​ deals, and expects to pay $ 3.30 per skein.

For ​ April, Mauriona​'s workers produced 200 shawls using 784 hours and 3,360 skeins of wool. Mauriona bought wool for $ 10,420 ​(and used the entire​ quantity), and incurred labor costs of $ 8,100.

1)

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 3.10

Direct material price variance= (3.3 - 3.10)*3,360= $672 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= [(12*200) - 3,360]*3.3= $3,168 unfavorable

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= [(4*200) - 784]*10= $160 favorable

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance= (10 - 10.33)*784= 258.72 unfavorable

2)

Work in process                                        7,924                      

Direct material quantity variance            3,168

Direct material price variance                                        672

Material inventory                                                           10,420          

Work in process              8,000

Direct labor price variance       260

Direct labor efficiency variance              160

Wages payable                                      8,100

7 0
3 years ago
30 points please help!
WINSTONCH [101]

Answer:

B.

Explanation:

Social Security is Payroll Tax.

3 0
3 years ago
The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. you decide to have a burger
Liula [17]

The correct option is your enjoyment of the bagel

The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. You decide to have a burger today, but if they were out of burgers, you would have bought a bagel. Your opportunity cost is your enjoyment of the bagel.

4 0
3 years ago
In this account of Budweiser’s history, there is evidence of both "Big M" marketing and "little m" marketing.
n200080 [17]

Answer:

Big M

Explanation:

The Big M Marketing is creating value for specific people. creating value here means understanding the peoples needs and motivations and using it to create a product to deliver to the people.

Budweiser is been advertised as the king of beers in america. this symbol has demonstrated its marketing strategy at identifying the peoples needs and thereby creating a value for it customers through its brand.

8 0
3 years ago
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following
iren [92.7K]

Answer:

1.  73 %

2. 27 %

3. $60,000

4. Ways to increase projected operating income without increasing total sales revenue :

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

                     = $88,000 - $23,760

                     = $64,240

Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

                                           = 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

                                = $23,760 / $88,000 × 100

                                = 27 %

Break-even sales revenue = Fixed Costs ÷  Contribution Margin Ratio

                                            = $43,800 ÷ 0.73

                                            = $60,000

<u>Ways to increase projected operating income without increasing total sales revenue :</u>

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads
7 0
2 years ago
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