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Topic: Business
Number of pages / Number of words: 8 / 2046
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Proposal of improvements in the system will also be presented in the decision portion of this paper.

ANALYSIS

Answers to Questions:

1.

a. A transfer price was used in connection with two items. What are these two items? Paper Board and Carton.

b. Assuming that inventory levels did not vary in December, what was the actual Cost of Goods sold manufactured in the carton factory? (Actual COGS) 787,000 – (Variance) 29,000 = 758,000...


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Why is the assumption in question b necessary to answer that question? Because variation in inventory is added into the computation of cost of goods sold

d. What is the budgeted amount of corporate expense? $86,000.

e. In December was activity in the board mill above or below the standard volume? It was above standard volume...


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