Chapter 21

Question 1a

Question 1b

Presented below are data relating to labor for Verde Appliance Repair Shop. Repair-technicians' wages Fringe benefits Overhead $110,400 23,000 50,600 The desired profit margin per hour is $20. The material loading charge is 60% of invoice cost. Verde estimates that 4,600 labor hours will be worked next year. If Verde repairs a dishwasher that takes 1.3 hours to repair and uses parts of $60, compute the bill for the job. Total cost $ The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.31 per unit. Its variable cost is $3.40 per unit, and its fixed cost per unit is $1.09. Management would like the fastener division to transfer 12,400 of these zippers to another division within the company at a price of $3.40. The fastener division could avoid $0.15 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $ (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $