Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 442 Weeks Ago, 5 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 02 May 2017 My Price 5.00

Giga-Stuff, Inc. has a number of divisions

1)

Giga-Stuff, Inc. has a number of divisions. One division, Sophistosand, makes a component, component X, that is used in the manufacture of DVD players. Another division, Videostuff, makes DVD players that use component X and needs 60,000 units of component X per year. Sophistosand incurs the following costs for one unit of component X:

Direct materials $0.30
Direct labor 0.15
Variable overhead 0.70
Fixed overhead 1.00
Total $2.15
   

Sophistosand has capacity to make 400,000 units of component X per year, but due to a soft market, only plans to produce and sell 320,000 units next year. Videostuff currently buys component X from an outside supplier for $2.50 each (the same price that Sophistosand receives). Refer to Figure 12-4. Assume that Sophistosand and Videostuff have agreed on a transfer price of $2.20. What is the total benefit for Sophistosand?

    $18,000
    $132,000
    $63,000
    $69,000
    $81,000


2)
Giga-Stuff, Inc. has a number of divisions. One division, Sophistosand, makes a component, component X, that is used in the manufacture of DVD players. Another division, Videostuff, makes DVD players that use component X and needs 60,000 units of component X per year. Sophistosand incurs the following costs for one unit of component X:
Direct materials $0.30
Direct labor 0.15
Variable overhead 0.70
Fixed overhead 1.00
Total $2.15
   
Sophistosand has capacity to make 400,000 units of component X per year, but due to a soft market, only plans to produce and sell 320,000 units next year. Videostuff currently buys component X from an outside supplier for $2.50 each (the same price that Sophistosand receives). Refer to Figure 12-4. Assume that Sophistosand and Videostuff have agreed on a transfer price of $2.20. What are the total cost savings for Videostuff?
    $18,000
    $132,000
    $63,000
    $69,000
    $81,000

Answers

Alpha Geek
(8)
Status NEW Posted 02 May 2017 07:05 PM My Price 5.00

-----------

Attachments

file 1493752400-answer1.docx preview (309 words )
1-----------) -----------Gig-----------a-S-----------tuf-----------f, -----------Inc-----------. h-----------as -----------a n-----------umb-----------er -----------of -----------div-----------isi-----------ons-----------. O-----------ne -----------div-----------isi-----------on,----------- So-----------phi-----------sto-----------san-----------d, -----------mak-----------es -----------a c-----------omp-----------one-----------nt,----------- co-----------mpo-----------nen-----------t X-----------, t-----------hat----------- is----------- us-----------ed -----------in -----------the----------- ma-----------nuf-----------act-----------ure----------- of----------- DV-----------D p-----------lay-----------ers-----------. A-----------not-----------her----------- di-----------vis-----------ion-----------, V-----------ide-----------ost-----------uff-----------, m-----------ake-----------s D-----------VD -----------pla-----------yer-----------s t-----------hat----------- us-----------e c-----------omp-----------one-----------nt -----------X a-----------nd -----------nee-----------ds -----------60,-----------000----------- un-----------its----------- of----------- co-----------mpo-----------nen-----------t X----------- pe-----------r y-----------ear-----------. S-----------oph-----------ist-----------osa-----------nd -----------inc-----------urs----------- th-----------e f-----------oll-----------owi-----------ng -----------cos-----------ts -----------for----------- on-----------e u-----------nit----------- of----------- co-----------mpo-----------nen-----------t X-----------: -----------Dir-----------ect----------- ma-----------ter-----------ial-----------s $-----------0.3-----------0 -----------Dir-----------ect----------- la-----------bor----------- 0.-----------15 ----------- Va-----------ria-----------ble----------- ov-----------erh-----------ead----------- 0.-----------70 ----------- Fi-----------xed----------- ov-----------erh-----------ead----------- 1.-----------00
Not Rated(0)