Answer:
1.72
Explanation:
SOLUTION
Cost of labor = $ 2000
Cost of material= $ 400
Overhead labor= $500
Multifactor productivity = (Value of Output/(Labor Cost + Material Cost + Overhead Cost))
(500 units)($10/unit)÷( $2,000 + $400+ $500)
= $5000÷$2900
= 1.72
Not sure on the first, but the second is C. 40,000.00
Answer:
$12
Explanation:
Calculation to determine the lowest acceptable transfer price from the perspective of selling division
Using this formula
Lowest Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
Where,
Variable Costs per unit = $12
Internal Savings = $0
Opportunity Cost = $0
Let plug in the formula
Lowest Transfer Price = $12-$0+$0
Lowest Transfer Price = $12
Therefore the lowest acceptable transfer price from the perspective of selling division is $12