Week 4 Individual Assignment

Week 4 Individual Assignment - Sellingpriceperunit...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Selling price per unit 30 Variable cost per unit 8 Contribution Margin 22 Fixed cost per unit  5 Net Income 17 (A) Variable Cost 8 Opportunity Cost 0 8 (B) Variable Cost 8 Opportunity Cost 22 30 ( C)  Minimum transfer price  excess capacity  Minimum transfer price-no  excess capacity  When transferring cost between division; variable cost a cost within division.    
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
In excess capacity the variable cost to produce the motor is $8 for internal use therefore; making the variable cost th e In no excess capacity the variable cost to produce the motor is $8 ,plus the loss of contribution margin opportunity c o transfer price of $30. and it loss of contribution margin per motor need to be added .  It capacity help define what should be accounted the r e
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 4
SAVAGE INC. Manufacturing Overhead Budget For The Year Ending December 31,2005 Quarterly 1 2 3 Total Variable Cost  20,000   22,000   24,000  Total Fixed Overhead  35,000   35,000   35,000  Total Manufacturing Overhead  55,000  $57,000  $59,000 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Year 4  26,000   92,000   35,000   140,000  $61,000  $232,000 
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 14

Week 4 Individual Assignment - Sellingpriceperunit...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online