Question: Hello! Can someone help me with these 4 problems. They are all related to the information given so I didnt want to post separate questions
Answer the following questions using the information below: Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Divon, which completes the shoe and sells it to retailers. The Stitching Division "sells"shoes to the Polishing Division. The market price for th purchase a pair of shoes is $42. (Ignore changes in inventory.) e Polishing Division to Stitching's costs per pair of soles are: Direct materials S10 Direct labor S8 Variable overhead S 6 Division fixed costs 4 Polishing's costs per completed pair of shoes are: Direct materials S14 Direct labor S6 Variable overhead $ 4 Division fixed costs S16 4. What is the market-based transfer price per pair of shoes from the Stitching Division to the Polishing Division? A) S20 B) S32 C) S42 D) S52 5. What is the transfer price per pair of shoes from the Stitching Division to the Polishing Division if the method used to place a value on each pair of shoes is l 80% of variable costs? A) S18.00 B) S32.40 C) $43.20 D) S57.60 6. What is the transfer price per pair of shoes from the Stitching if the transfer price per pair Division to the Polishing Division of soles is l 25% of full costs? A) S12.50 B) S22.50 C) S30.00 D) S35.00 7. Calculate and compare the difference in overall corporate net income of Branded Shoe Company between Scenario A and Scenario B if the Polishing Division sells 100,000 pairs of shoes for S120 per pair to customers
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
