2 parts please solve will like and comment 4. The following information relates...
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2 parts please solve will like and comment
4. The following information relates to Your Company: Total manufacturing overhead estimated for the year.......... $864,000 Predetermined overhead rate (based on direct labor-hours). $5.00 per DLH Total direct labor-hours incurred during the year................ 25,000 DLHs Manufacturing overhead over-applied for the year............. $4,600 How much was actual manufacturing overhead cost? Division X makes and sells a single product. Presently it sells 12,000 units per year to outside customers at $24 per unit. The annual capacity is 20,000 units and the variable cost to make each unit is $16. Division would like to buy 10,000 units a year from Division X to use in its products. There would be a $2 cost savings from transferring the units within the company rather than selling them on the outside market. What should be the lowest acceptable transfer price from the perspective of Division X? HINT: Calculate the opportunity cost for 2,000 units that would have to come from lost outside sales and figure out the per unit opportunity cost for the 10,000 units
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