_____ 1. If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal places)_____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider? (Round off your final answer to 3 decimal places) Northem Vale is one of the divisions of Moonton Company. Northem Vale produces "Iron Hook" and can ourrentlywell 79% of is anual capacity to outside customers. Mooniyan Division, anodher division of Moonton Company.developod "acrod hammer" uhich uses the "ron Hook" as one of in direct materials plas another materials to bepurchasod from outside supplien. Mooniyan Division is wodking at full capacity and will roquire Northern Vale tosupply all the leon Hooks that they need. All the divisions of Moenton Company uses standard costing and properlyconmols the costs and computes for variancesThe standard cost in producing I unit of lron Hook is as followsPhp 22Direct material (22 bs e Po.)Direct laber (4 h P6ah)24Factory overhead*30 fined.*"ludgsted annual fixod cost is P900,00030The standand cost in producing I unit of Sacrod Hammer is as followsloon Hook (Ipe PS0)Material X (15 hs P20)Direct labor (0.5 dlhe P36h)3018Variable Factory overhecadFinod Factory overhead1412"Based on anmual capacity of 40,000 unitsNorthem Vale oumrently sells the Iron Hook to outside customers at a mark-up of 10% on full standand cost whileMooniyan was able to find a supplier of Iron Hook at P80.

Moonton Company has two divisions - Northern Vale Division which manufactures iron hooks &…

If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal places) _____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider? (Round off your final answer to 3 decimal places)

If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal places) _____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider? (Round off your final answer to 3 decimal places)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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