acc 349 wk 5 assignment 498202

Cawley Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cawley then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.

Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division.

Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division.

Kendra Company’s standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to produce 10,000 units of Product DD.

Compute the total labor variance.

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Compute the labor price and quantity variances.

Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $12.25 per hour.