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Part 43X costs the Southern Division of Norris Corporation $27 to produce. Making up that cost are direct materials of $9, direct labor of $5, variable manufacturing overhead of $10, and fixed manufacturing overhead of $3. Southern Division sells Part 43X to other companies for $32. The Northern Division of Norris Corporation can use Part 43X in one of its products. The Southern Division has enough idle capacity to produce all of the units of Part 43X that the Northern Division would require. What is the lowest transfer price at which the Southern Division should be willing to sell Part 43X to the Northern Division?
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Evaluate the Predetermined Overhead Rate
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Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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