1. Calculate the operating incomes for the Mining and Metals divisions for th 250,000 units of Toldine transferred under the following transfer-pricing methods: (a) market price and (b) 120% of full manufacturing cost. 2. Which transfer-pricing method does the manager of the Mining division pr What arguments might he make to support this method?
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- Tabouk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1-What would be the company's overall net operating income if the company operated at its two division's break-even points?Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?BrightTech Ltd has two Divisions that manufacture and sell agricultural products: Lawn and Tree Divisions. The following historical cost accounting data relate to Lawn and Tree Divisions for the year 2020: Lawn Tree Revenues 2,200,000 1,000,000 Variable costs 520,000 240,000 Fixed costs (excluding depreciation) 300,000 280,000 Plant depreciation 250,000 70,000 Operating income 1,130,000 410,000 Divisional assets (at Gross Book Value) 1,800,000 600,000 Accumulated depreciation (350,000) (160,000) Divisional assets (at Net Book Value) 1,450,000 440,000 BrightTech's CEO has $400,000 available to invest in one project in either Lawn or Tree Division. The expected operating income for this investment is $115,000 in 2021. The company's required return on investment is 25%. Required: (a) Calculate the ROI of each…
- Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for 2022: HEALTH CARE PRODUCTS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 1,200 770 $ 430 COSMETICS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 960 460 $ 500 Ready estimates the useful life of each manufacturing facility to be 21 years. As of the end of 2022, the plant for the health care division is 4 years old, while the manufacturing plant for the cosmetics division is 6 years old. Each plant had the same cost at the time of purchase, and both have useful lives of 21 years with no salvage value. The company uses straight-line depreciation and the depreciation charge is $70,000 per year for each division. The manufacturing facility is the only long-lived asset of either division. Current assets are $312,000 in each…BrightTech Ltd has two Divisions that manufacture and sell agricultural products: Lawn and Tree Divisions. The following historical cost accounting data relate to Lawn and Tree Divisions for the year 2020: Lawn Tree Revenues 2,200,000 1,000,000 Variable costs 520,000 240,000 Fixed costs (excluding depreciation) 300,000 280,000 Plant depreciation 250,000 70,000 Operating income 1,130,000 410,000 Divisional assets (at Gross Book Value) 1,800,000 600,000 Accumulated depreciation (350,000) (160,000) Divisional assets (at Net Book Value) 1,450,000 440,000 BrightTech's CEO has $400,000 available to invest in one project in either Lawn or Tree Division. The expected operating income for this investment is $115,000 in 2021. The company's required return on investment is 25%. Required: (a) Calculate the ROI of each…Various Financial data for 2019 and 2020 follows. Calculate the total productivity measure and the partial measures for labour, raw materials, and energy for this company for both years. 2019 $75,000 Output: Input: Sales Total Productivity Partial Lab Productivity Partial Material Productivity Labour Materials Energy Other 19,150 21,620 12,250 8,300 61,320 For your answers, write value rounded to two decimal points. Include zeros if applicable and do not include any symbols. (Examples: 3.445 should be written as 3.45, 3.000 should be written as 3.00) 2019 2020 2020 $92,300 22,150 25,120 26,730 5,170 79,170 Partial Energy Partial Other For your answers below, type one of the options exactly as provided in the brackets. Based on the results the company overall is The company's best improvement is seen in The company's biggest decline is seen in (improving / declining). (labour / material / energy / other). (labour / material / energy / other).
- Carica Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: SUPPORT PRODUCTIONMaterials Requisitions(MR)Utility Services(US)Machining Assembly TotalBudgeted overhead costs before any interdepartment cost allocations$200,000 $1,000,000 $5,456,000 $7,458,000 $14,114,000Support work supplied by MR (Number of requisitions)0 25% 40% 35% 100%Support work supplied by US (Power costs)10% 0 30% 60% 100%Required:1. Allocate the two support departments’ costs to the two operating departments using the following methods: a. Direct method b. Step-down method (allocate MR first) c. Step-down method (allocate US first) d. The Algebraic method. 2. Compare and explain differences in the support-department costs allocated to each production department. 3. What approaches might be used to decide the sequence in which to…The financial data for 2017 and 2018 are presented in the table below. Use the data to calculate the total productivity measure and the partial measures for labor, capital, and raw materials for ABCD Company for the two years. Explain what each of measures tell you about this company 2 017 2018Output: Sales $300,000 $320,000Input: Labour 40,000 50,000Raw Materials 45,000 55,000Energy 6,000 7,000Capital 60,000 60,000Other 3,000 4,000Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
- The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.Syarikat Aman Sdn Bhd (SASB) manufactures leather products for the local market. At the beginning of the year 2018, SASB estimates the following costs: Manufacturing overhead costs$ 498,750 Direct labor cost $ 600,000 The following are information related to the production in 2018: Direct labor $ 640,000 Depreciation $ 120,000 Property tax $ 6,000 Supervisor salary $ 100,000 Utilities $ 29,500 Insurance $ 15,000 Rental of space $ 150,000 Indirect labor $ 41,000 Indirect material : Inventory at January 2017 $ 24,000 Purchase during the year $ 47,000 Inventory at December 2017 $ 31,500 T he price per unit for direct material is estimated at $ 5 per unit and direct labor rate per unit is $ 16 per hour. The accountant informed that this amount is similar for both budgeted and actual costs. REQUIRED: (a) Calculate the pre-determined overhead rate for SASB using direct labor hour as a basis. (b) Calculate the under-applied or over-applied overhead. (c) Prepare a journal entry to close the…