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Author Question: Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary ... (Read 105 times)

123654777

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on: Mar 6, 2021

Question 1

The costs used in cost-based transfer prices ________.
◦ are actual costs
◦ are budgeted costs
◦ can either be actual or budgeted costs
◦ are lower than the market-based transfer prices

Question 2

Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary product is high-end watches. Each division's costs are provided below:

Manufacturing:Variable costs per unit$1.87
​Fixed costs per unit$7.29
Distribution:Variable costs per unit$1.40
​Fixed costs per unit$0.60

The Distribution Division has been operating at a capacity of 4,009,000 units a week and usually purchases 2,004,500 units from the Manufacturing Division and 2,004,500 units from other suppliers at $10.00 per unit.

What is the transfer price per watch from the Manufacturing Division to the Distribution Division, assuming the method used to place a value on each watch is 170% of variable costs?
◦ $1.87
◦ $3.18
◦ $3.19
◦ $8.13
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by 123654777 on Mar 6, 2021

yuyiding

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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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123654777

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

covalentbond

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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