1 Part 1 of 2 2 points Mc Graw Hill Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Clearview Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company's best-selling product is a three-by-four-foot, doublepaned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $190. The Glass Division sells its finished windows for $430. The markets for both frames and finished windows exhibit perfect competition. The standard variable cost of the window is detailed as follows: Direct material Direct labor Variable overhead Total Frame Division $ 35 50 85 $170 *Not including the transfer price for the frame. Glass Division $ 85* 35 70 $190 Assume that there is no excess capacity in the Frame Division. Required: 1-a. Use the general rule to compute the transfer price for window frames. 1-b. Calculate the transfer price if it is based on standard variable cost with a 10 percent markup. Answer is complete but not entirely correct. 1- Transfer price $ 190 a. 1- b. Transfer price $ 209 < Prev 1 2 of 2 Next > Return to