Answer:
a. $11
b. $22
c. Range is $11 to $22
Explanation:
Part a
The lowest acceptable (minimum) transfer price is the price that is acceptable to the transferring division and out of a range of prices, it could be that which would be the best for the company.
Minimum Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
where,
Variable Costs per unit = $11
Internal Savings = $0
Opportunity Cost = $0
therefore,
Minimum Transfer Price = $11
Part b
The highest acceptable(maximum) transfer price is the maximum price that causes the receiving or buying division to breakeven. It could also be the price at which they could purchase the product in the market at arms length position.
therefore,
Maximum Transfer Price = $22
Part c
The best range of acceptable transfer prices must encourage goal congruence, must facilitate measurement of performance and divisions should function autonomously.
therefore,
The best range of acceptable transfer prices is within the Minimum and Maximum Transfer Price.
Answer:
Predetermined overhead rate = $0.8 per hour
Overhead applied in December = $34,960
Explanation:
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hours
Predetermined overhead rate = $416,000 / 520,000 hours
Predetermined overhead rate = $0.8 per hour
(as Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.)
Actual Labor hour = 43,700
Overhead applied in December = 43,700 hours x $0.8 = $34,960
Answer:
A
Explanation:
Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800. What is the equity multiplier?
Answer:
A limited liability company
Explanation:
A limited liability company has characteristics of corporations, partnerships, and sole proprietorships. Like a corporation, the owners have limited liability. Like a partnership and sole proprietorship, profits are taxed once through flow through taxation.
I hope my answer helps you
Answer:
c.
Explanation:
Based on the scenario being described it can be said that the action that should be expected to be performed would be connecting multiple processes such as performance management, training and development, and career management. This is because the Integrated Talent Management (TM) approach focuses on all of the HR processes in order to attract, onboard, develop, engage, and retain high-performing employees.