Maurice Tutor

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About Maurice Tutor

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Expertise:
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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 6 Days Ago
Questions Answered: 66690
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Sep 2017 My Price 7.00

division of Keeler,

Direct material

$2.00

Direct labor

1.4

Variable overhead

0.8

Fixed overhead (based on production of 700,000 pairs)

2.75

Variable selling expense

0.5

Another division of Keeler, the Trailer Division, wants to purchase 25,000 pairs of brake pads from Trusty pad Division during next year. No selling costs are incurred on internal sales.

a. If Trusty pad’s manager can sell all the brake pads it produces externally, what should the minimum transfer price be? Explain.

b. Assume that Trust ypad Division is experiencing a slight slowdown in external demand and will be able to sell only 600,000 pairs of brake pads to outsiders next year at the $12 selling price. What should be the minimum selling price to the Trailer Division under these conditions? Explain.

c. Assume that Mr. Leon, the manager of Trailer Division, offers to pay Trusty pad Division’s production costs plus 25 percent for each pair of brake pads. He receives an invoice for $217,187.50, and he was planning on a cost of $131,250. How were these amounts determined? What created the confusion? Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 01:09 PM My Price 7.00

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