You are the manager of the manufacturing division of Superio…

You are the manager of the manufacturing division of Superior Corporation, and you need to determine the price that should be charged for component G that is transferred to the assembling division. Both divisions are evaluated as profit centres. The production costs for one unit of component G is as follows:   Direct materials $4.75 Direct labour 6.20 Variable overhead 3.15 Fixed overhead 2.32   The assembling division uses component G, along with externally supplied components, in the assembly of product F. The assembling division can sell product F externally for $52. The costs incurred by the assembling division, excluding the cost of component F, are as follows:   Direct materials $7.40 Direct labour 6.50 Variable overhead 4.27 Fixed overhead 3.39     Required Determine the maximum and the minimum transfer price that could be used for each unit of component G. Explain whether the managers would be able to negotiate a transfer price. Indicate what the transfer price would be if it is set equal to full production costs. Indicate what the transfer price would be if it is set equal to variable production costs. Briefly explain why the manufacturing division would be reluctant to transfer component G at a price equal to variable costs. Identify what other factors may have an influence on the determination of the transfer price.

Superior Corporation is considering spending the following a…

Superior Corporation is considering spending the following amounts on a new TQM program in 2023: Strength-testing one item from each batch 75,000 Training suppliers in TQM 30,000 Identifying preferred suppliers that commit to on-time delivery of perfect quality materials 60,000   Welsh Corporation expects the new program to save costs in 2023 through the following: Avoid lost profits from lost sales due to disappointed customers 90,000 Avoid rework and spoilage 45,000 Avoid inspection of raw materials 48,000 Avoid warranty costs 30,000   Requirements Prepare a cost of quality report in good form. (No percentages are needed) Should Superior Corporation implement the new quality program? Provide your reason. Discuss what type of costs a quality cost report track and what costs are traditionally excluded from the quality cost report. Identify the three types of opportunity costs of not implementing a quality cost program.