Ayayai Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Ayayai then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Unit fixed cost Unit variable cost Unit selling price (a) $7 10 34 Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price. per unit

Outsourcing                         Dough, Re, Mi Inc. sells many different types of cookie dough.  The company is deciding whether to continue making its own dough or to outsource.  If the company outsources, they will eliminate all of the variable overhead and 25% of the fixed manufacturing overhead, but will incur shipping costs.  Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not.                       Data     Units   Per unit   Relevant?             Sales price per unit                                         5,300    $                               106.00   No             Direct materials per unit                                             23.00   ?             Direct labor per unit                                             18.00   ?             Variable manufacturing overhead per unit                                            14.00   Yes             Fixed…

Subject: acounting

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below:   Recliner Sofa Love Seat Selling price per unit $ 1,158   $ 1,950   $ 1,400   Variable cost per unit $ 750   $ 1,300   $ 1,000   Upholstery labor-hours per unit 6 hours 13 hours 5 hours Required: Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $45 per hour. The management of…