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Author Question: Plish Company manufactures only one type of washing machine and has two divisions, the Compressor ... (Read 77 times)

aabwk4

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on: Mar 6, 2021

Question 1

Negotiated transfer prices are often employed when ________.
◦ market prices are stable
◦ market prices are volatile
◦ market prices change by a regular percentage each year
◦ goal congruence is not a major objective

Question 2

Plish Company manufactures only one type of washing machine and has two divisions, the Compressor Division, and the Fabrication Division. The Compressor Division manufactures compressors for the Fabrication Division, which completes the washing machine and sells it to retailers. The Compressor Division "sells" compressors to the Fabrication Division. The market price for the Fabrication Division to purchase a compressor is $60.00. (Ignore changes in inventory.) The fixed costs for the Compressor Division are assumed to be the same over the range of 13,000-18,000 units. The fixed costs for the Fabrication Division are assumed to be $7.50 per unit at 18,000 units.

 Compressor's costs per compressor are:
Direct materials$17
Direct labor$13.00
Variable overhead$3.50
Division fixed costs$10.50

 Fabrication's costs per completed air conditioner are:
Direct materials$164.00
Direct labor$66.00
Variable overhead$20.00
Division fixed costs$10.50

What is the market-based transfer price per compressor from the Compressor Division to the Fabrication Division?
◦ $16.50
◦ $33.00
◦ $40.50
◦ $60.00
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by aabwk4 on Mar 6, 2021

elizabethrperez

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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aabwk4

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

samiel-sayed

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Reply 3 on: Yesterday
Excellent

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