Week 4 Individual Assignment

Week 4 Individual Assignment - Sellingpriceperunit...

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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.    
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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
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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 
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Year 4  26,000   92,000   35,000   140,000  $61,000  $232,000 
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This note was uploaded on 11/17/2010 for the course ACC349 ACC349 taught by Professor Villella during the Spring '10 term at University of Phoenix.

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Week 4 Individual Assignment - Sellingpriceperunit...

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