The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal...
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Accounting
The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include:
Outside Sales Price $640
Direct Materials 105
Direct Labor 250
Fixed overhead 180
If Mukilteo has excess capacity available to meet an internal order, what transfer price should be set?
If Mukilteo is operating at full capacity and selling solely to outside customers, what price should another division pay for Mukilteos product?
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