Colora Furniture had the following historical accounting data, per hundred board metres, concerning one of its products:
$\text { Finished shelving: }$
$\begin{array}{llr}
\text { Direct materials } &\$30\
\text { Direct labour } &16\
\text { Variable overhead} &10\
\text { Fixed overhead } &12\
\text { Vaniable selling expenses } &8\
\text { Fixed selling expenses} &4\
\end{array}$
The shelving is normally transferred internally from the Cutting Division to the Finishing Division.It also may be sold externally for $110 per hundred board metres.The minimum profit level accepted by the company is a markup of 20 percent.
-Refer to the figure.If the negotiated price is used,what should be Colora Furniture's transfer price?

Question

Colora Furniture had the following historical accounting data, per hundred board metres, concerning one of its products:
$\text { Finished shelving: }$
$\begin{array}{llr}
  \text { Direct materials } &\$30\
 \text { Direct labour } &16\
 \text {  Variable overhead} &10\
 \text { Fixed overhead } &12\
 \text { Vaniable selling expenses } &8\
 \text {  Fixed selling expenses} &4\
\end{array}$
 The shelving is normally transferred internally from the Cutting Division to the Finishing Division.It also may be sold externally for $110 per hundred board metres.The minimum profit level accepted by the company is a markup of 20 percent.
-Refer to the figure.If the negotiated price is used,what should be Colora Furniture's transfer price?

Quizplus · Accepted Answer

The Answer of Colora Furniture had the following historical accounting data, per hundred board metres, concerning one of its products:
$\text { Finished shelving: }$
$\begin{array}{llr}
  \text { Direct materials } &\$30\
 \text { Direct labour } &16\
 \text {  Variable overhead} &10\
 \text { Fixed overhead } &12\
 \text { Vaniable selling expenses } &8\
 \text {  Fixed selling expenses} &4\
\end{array}$
 The shelving is normally transferred internally from the Cutting Division to the Finishing Division.It also may be sold externally for $110 per hundred board metres.The minimum profit level accepted by the company is a markup of 20 percent.
-Refer to the figure.If the negotiated price is used,what should be Colora Furniture's transfer price?

Colora Furniture Had the Following Historical Accounting Data, Per Hundred Finished shelving: \text { Finished shelving: } Finished shelving:

Colora Furniture Had the Following Historical Accounting Data, Per Hundred $\text { Finished shelving: }$