47. Redding Company has two divisions with the following segment margins for the current year: Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What is Redding Company's income? OSs0.000 O sG00,000 S150,000 $550,000 48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra incurs the following costs for ane bax: Direct materials $0.35 Direct labor $0.60 Variable overhead $0.40 Fixed averhead $0.13 $1.48 Tolal Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an outside supplier for $1.80 cach (the same price that Centra receives). Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What would be the transfer price if Contra transferred boxes to Mantra? O $1.35 Cannot be determined trom the information gen OS1.48 $0.90 $1.00
47. Redding Company has two divisions with the following segment margins for the current year: Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What is Redding Company's income? OSs0.000 O sG00,000 S150,000 $550,000 48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra incurs the following costs for ane bax: Direct materials $0.35 Direct labor $0.60 Variable overhead $0.40 Fixed averhead $0.13 $1.48 Tolal Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an outside supplier for $1.80 cach (the same price that Centra receives). Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What would be the transfer price if Contra transferred boxes to Mantra? O $1.35 Cannot be determined trom the information gen OS1.48 $0.90 $1.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![47. Redding Company has two divisions with the following segment margins for the current year:
Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What
is Redding Company's income?
OSs0.000
O sG00,000
S150,000
$550,000
48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes
boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra
incurs the following costs for ane bax:
Direct materials $0.35
Direct labor
$0.60
Variable overhead
$0.40
Fixed averhead $0.13
$1.48
Tolal
Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an
outside supplier for $1.80 cach (the same price that Centra receives).
Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What
would be the transfer price if Contra transferred boxes to Mantra?
O $1.35
Cannot be determined trom the information gen
OS1.48
$0.90
$1.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8175eb9b-e4a4-4cd1-ad21-f43c713c23b0%2F70c047ea-1eae-498e-9e7d-b82a740a9ec9%2F61oljyr_processed.png&w=3840&q=75)
Transcribed Image Text:47. Redding Company has two divisions with the following segment margins for the current year:
Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What
is Redding Company's income?
OSs0.000
O sG00,000
S150,000
$550,000
48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes
boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra
incurs the following costs for ane bax:
Direct materials $0.35
Direct labor
$0.60
Variable overhead
$0.40
Fixed averhead $0.13
$1.48
Tolal
Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an
outside supplier for $1.80 cach (the same price that Centra receives).
Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What
would be the transfer price if Contra transferred boxes to Mantra?
O $1.35
Cannot be determined trom the information gen
OS1.48
$0.90
$1.00
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