Division X of Bella Corporation sells Part A to other companies for $87.20 per unit. According to the company's accounting system, the costs to Division X to make a unit of Part A are: O $87.20 per unit $62.60 per unit O $58.10 per unit Direct materials Direct labor Variable O $79.95 per unit O None of the above $42.70 $5.80 Division Y of Bella Corporation uses a part much like Part A in one of its products. Division Y can buy this part from an outside supplier for $79.95 per unit. However, Division Y could use Part A instead of the part it purchases from the outside supplier. What is the most Division Y would be willing to pay the Division X for Part A? manufacturing $9.60 overhead Fixed manufacturing $4.50 overhead

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter10: Short-term Decision Making
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Division X of Bella Corporation sells Part A to other companies for $87.20 per unit.
According to the company's accounting system, the costs to Division X to make a unit of
Part A are:
O $87.20 per unit
O $62.60 per unit
O $58.10 per unit
O $79.95 per unit
O None of the above
Direct
materials
Direct labor $5.80
Variable
Division Y of Bella Corporation uses a part much like Part A in one of its products.
Division Y can buy this part from an outside supplier for $79.95 per unit. However,
Division Y could use Part A instead of the part it purchases from the outside supplier.
What is the most Division Y would be willing to pay the Division X for Part A?
Question 21
$42.70
manufacturing $9.60
overhead
Fixed
manufacturing $4.50
overhead
Transcribed Image Text:Division X of Bella Corporation sells Part A to other companies for $87.20 per unit. According to the company's accounting system, the costs to Division X to make a unit of Part A are: O $87.20 per unit O $62.60 per unit O $58.10 per unit O $79.95 per unit O None of the above Direct materials Direct labor $5.80 Variable Division Y of Bella Corporation uses a part much like Part A in one of its products. Division Y can buy this part from an outside supplier for $79.95 per unit. However, Division Y could use Part A instead of the part it purchases from the outside supplier. What is the most Division Y would be willing to pay the Division X for Part A? Question 21 $42.70 manufacturing $9.60 overhead Fixed manufacturing $4.50 overhead
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