Question

Presented below are data relating to labor for Concord Appliance Repair Shop.

Repair-technicians' wages		$162,400
Fringe benefits		44,800
Overhead		84,000

The desired profit margin per hour is $18. The material loading charge is 60% of invoice cost. Concord estimates that 5,600 labor hours will be worked next year. If Concord repairs a dishwasher that takes 1.5 hours to repair and uses parts of $70, compute the bill for the job.

Total cost

$

2.) The fastener division of Bonita Fasteners manufactures zippers and then sells them to customers for $7.23 per unit. Its variable cost is $2.72 per unit, and its fixed cost per unit is $1.89. Management would like the fastener division to transfer 12,300 of these zippers to another division within the company at a price of $2.72. The fastener division could avoid $0.29 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price.

(a)

Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.)

Minimum transfer price

$

(b)

Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.)

Minimum transfer price

$

Answer 1