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Division X is a profit centre which produces three products ABC. Each product has an - external market, but B can also be transferred to Division Y. The maximum quality that might be required for transfer is 30 units of B. Information on the products is as follows: A B. #84 #57 Labour Hours Required in Div X 3 Maximum External Sales 1400 External Market per unit Variable Production in Div X #81 #41 4 875 C #70 #49 2 525 Required (a) If Labour Hours in Division X are limited to 1,170, what is the appropriate transfer price for a unit of B (8 marks) (b) If Labour Hours in Division X are limited to 4,670, what is the appropriate transfer price for a unit of B (7 Marks) Division X is a profit centre which produces three products ABC. Each product has an - external market, but B can also be transferred to Division Y. The maximum quality that might be required for transfer is 30 units of B. Information on the products is as follows: A B. #84 #57 Labour Hours Required in Div X 3 Maximum External Sales 1400 External Market per unit Variable Production in Div X #81 #41 4 875 C #70 #49 2 525 Required (a) If Labour Hours in Division X are limited to 1,170, what is the appropriate transfer price for a unit of B (8 marks) (b) If Labour Hours in Division X are limited to 4,670, what is the appropriate transfer price for a unit of B (7 Marks)
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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