Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is $1,295 and reported the following manufacturing cost and expenses data: Direct materials Direct labor Boat Hull Manufacturing Manufacturing Costs and Variable Expense Report T24 Part OA. $855 OB. $960 OC. $1,295 OD. $1,105 $855 $105 $145 $140 $95 Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) What is the highest transfer price the selling division would receive, and the buying division would pay, for the T24 part?

Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is $1,295 and reported the following manufacturing cost and expenses data: Direct materials Direct labor Boat Hull Manufacturing Manufacturing Costs and Variable Expense Report T24 Part OA. $855 OB. $960 OC. $1,295 OD. $1,105 $855 $105 $145 $140 $95 Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) What is the highest transfer price the selling division would receive, and the buying division would pay, for the T24 part?

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Description: Please do not give solution in image format thanku Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 14E: Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct...

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