Coronado comlany produces 2 products, flower and planter. flower is a high-volume item totaling 20000 units annually. planter is low-volume item totalling only 6000 unites per year. flower requires 1 hour of direct labor for completion, while each unit of planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000 + 12000). Estimated annual manufacturing overhead costs are $720000. Coronado uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of
Module 3 – CaseTransfer Pricing and Responsibility CentersAssignment OverviewTransfer Pricing In recent years, high-profile cases involving companies like Apple (Ireland, 2016), Amazon (Luxembourg. 20
Module 3 – CaseTransfer Pricing and Responsibility CentersAssignment OverviewTransfer Pricing In recent years, high-profile cases involving companies like Apple (Ireland, 2016), Amazon (Luxembourg. 2017), and Starbucks (UK, 2012) have highlighted the risks of using aggressive transfer pricing to minimize taxes. These companies faced public backlash and government scrutiny for shifting