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Business, 10.12.2019 00:31, smrichardson0220
Card manufacturing manufactures software parts for the computer software systems that produce e - cards. the flash ii part is currently manufactured in the computer department. the data department also produces the part and the plant has excess capacity to produce the flash ii part. the current market price of the flash ii part is $ 900.. the managerial accountant reported the following manufacturing costs and variable expense data:
flash e - card manufacturing
manufacturing costs and variable expense report
flash component (bold section should be attached to list of expense data below question and the highest acceptable transfer price is $ 900in the market, what is the lowest acceptable in - house price the data department should receive to produce the part in - house at the computerdepartment?
a.
$ 850
b.
$ 200
c.
$ 120
d.
$ 1,170
direct materials:
$850
direct labor:
$120
variable manufacturing overhead:
$200
fixed manufacturing overhead (current production level):
$165
variable selling expenses (only incurred on sales to outside consumers):
$116
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Answers: 1
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