mplete) | HW Score: 66.67%, 6.67 of 10 pts i More Info the a The division\'s man
ID: 2561982 • Letter: M
Question
mplete) | HW Score: 66.67%, 6.67 of 10 pts i More Info the a The division's manufacturing costs and variable selling expenses related to the video card are as follows: Cost per unit $ 9.00 $ 7.00 $ 5.00 Direct materials tal ma hat the Direct labor this sed: er price Variable manufacturing overhead Fixed manufacturing overhead S 4.00 $5.00 (at current production level) Variable selling expenses The Computer Division of Martin Manufacturing can use the video ernalt card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an full reased outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is S$29 regardless sfer pric of whether the video card is produced by Martin Manufacturing or PrintDone Clear All Check Answer ID PsExplanation / Answer
5. Transfer price=variable cost×1.28
=($9+$7+$5)×1.28
=$26.88
6.
Transfer price=variable cost+fixed manufacturing overhead cost+ variable selling expenses×102%
={($9+$7+$5)+($4-$1)+$5}×102%
=$29.58
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