06 - 22-18 (Cont'd.) Metho Metho dA dB Interna Interna l l...

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Unformatted text preview: 22-18 (Cont'd.) Metho Metho dA dB Interna Interna l l Transfe Transfe rs rs at at Market 200% Price of Full Costs Method C Internal Transfers at 300% of Variable Costs 1. China Division Division revenue per unit Deduct: Division variable cost per unit Division fixed cost per unit Division operating income per unit Income tax at 40% Division net income per unit 2. South Korea Division Division revenue per unit Deduct: Transferred-in cost per unit Division variable cost per unit Division fixed cost per unit Division operating income per unit Income tax at 20% Division net income per unit 3. United States Division Division revenue per unit Deduct: Transferred-in cost per unit Division variable cost per unit Division fixed cost per unit Division operating income per unit Income tax at 30% Division net income per unit $ 450 125 225 100 40 $ 60 $ 700 125 225 350 140 $ 210 $ 375 125 225 25 10 $ 15 $1,300 450 300 400 150 30 $ 120 $2,800 700 300 400 1,400 280 $1,120 $2,025 375 300 400 950 190 $ 760 $3,200 1,300 100 200 1,600 480 $1,120 $3,200 2,800 100 200 100 30 $ 70 $3,200 2,025 100 200 875 262.5 $ 612.5 2. Division net income: Market Price 200% of Full Costs 300% of Variable Cost China Division South Korea Division U.S. Division User Friendly Computer Inc. $ 60 120 1,120 $1,300 $ 210 1,120 70 $1,400 $ 15.00 760.00 612.50 $1,387.50 ...
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This note was uploaded on 02/05/2012 for the course ACCOUNTING acct 504 taught by Professor Dehmal during the Spring '10 term at DeVry Pittsburgh.

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06 - 22-18 (Cont'd.) Metho Metho dA dB Interna Interna l l...

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