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Category > Accounting Posted 11 Jul 2017 My Price 13.00

Determining transfer prices LO C2

Exercise 22-11A Determining transfer prices LO C2

The Trailer department of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $98 each. Each trailer incurs $37 of variable manufacturing costs. The Trailer department has capacity for 26,000 trailers per year, and incurs fixed costs of $440,000 per year.

 

Required:
1.

Assume the Assembly division of Baxter Bicycles wants to buy 5,900 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycle s divisions?
2.

Assume the Trailer division currently only sells 10,600 trailers to outside customers, and the Assembly division wants to buy 5,900 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycle s divisions?

 

Problem 22-5A Manufacturing cycle time and efficiency LO A4

Oakwood Company produces maple bookcases to customer order. It received an order from a customer to produce 5,000 bookcases. The following information is available for the production of the bookcases.

 
 
Process time 9.0 days
Inspection time 1.4 days
Move time 3.7 days
Wait time 12.0 days

 

Required:
1. Compute the company s manufacturing cycle time. (Round your answers to 1 decimal place.)

 

2. Compute the company s manufacturing cycle efficiency. (Round your answers to 1 decimal place.)

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Jul 2017 11:07 PM My Price 13.00

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