Question: Required information Problem 13-46 Comprehensive Transfer-Pricing Problem; Ethics {LO 13-6, 13-7, 13-8) {The foo wing infomation applies to the questions displayed below} Clearview Window Company








Required information Problem 13-46 Comprehensive Transfer-Pricing Problem; Ethics {LO 13-6, 13-7, 13-8) {The foo wing infomation applies to the questions displayed below} Clearview Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company's best-selling product is a three-by-four-foot, doublepaned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $175. The Glass Division sells its nished windows for $410. The markets for both frames and nished windows exhibit perfect competition. The standard variable cost of the window is detailed as follows: Frame Division Glass Division Direct material 1; 33 $ 552; Direct labor 32 33 Variable overhead 65 55 Total $139 $153 "Not including the transfer price for the frame. Problem 13-46 Part 1 Assume that there is no excess capacity in the Frame Division. Required: 1-a. Use the general rule to compute the transfer price for window frames. 1-b. Calculate the transfer price if it is based on standard variable cost with a 10 percent markup. - III- Problem 13-46 Part 2 2-3. Assume that there is excess capacity in the Frame Division. Use the general rule to compute the transfer price for window frames. 2-:. Suppose the predetermined xed-overhead rate in the Frame Division is 125 percent of direct-labor cost. Calculate the transfer price if it is based on standard full cost plus a 10 percent markup. 2-d. The Glass Division has been approached by the US. Army with a special order for 1,300 windows at $333. Assume the transfer price established in requirement 2-c. above is being used. i. What is the incremental contribution {loss} per window for Clearview Window Company as a whole if this special order is accepted? ii. From the perspective of Clearview Window Company as a whole. should the special order be accepted or rejected? 2-e. The Glass Division has been approached by the U5. Army with a special order for 1.300 windows at $338. Assume the transfer price established in requirement 2-c. above is being used. i. What is the incremental contribution {loss} per window for the Glass Division if this special order is accepted? ii. Will an autonomous Glass Division manager accept or reject the special order? 9 Answer Is not complete. Complete this question by entering your answers In the tabs below. RquDI Req2Dii RquEI RquEii Assume that there Is excs cepaclty In the Frame Dlvlslon. Use the general rule to oompube the transfer price for wlndow tron-ha. : Fteq 2|: > x Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 2C Req 2D i Req 2D ii Req 2E i Req 2E ii Suppose the predetermined fixed-overhead rate in the Frame Division is 125 percent of direct-labor cost. Calculate the transfer price if it is based on standard full cost plus a 10 percent markup. Transfer price* Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Reg 2C Req 2D i Reg 2D ii Req 2E i Req 2E ii The Glass Division has been approached by the U.S. Army with a special order for 1,300 windows at $338. Assume the transfer price established in requirement 2-c. above is being used. What is the incremental contribution (loss) per window for Clearview Window Company as a whole if this special order is accepted? Contribution (loss) per windowX Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 2C Req 2D i Req 2D ii Req 2E i Req 2E ii The Glass Division has been approached by the U.S. Army with a special order for 1,300 windows at $338. Assume the transfer price established in requirement 2-c. above is being used. What is the incremental contribution (loss) per window for the Glass Division if this special order is accepted? (Negative amounts should be indicated by a minus sign.) Contribution (loss) per window
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