25 Question 6(a): Transfer Pricing 8 Marks Supreme Limited has two Divisional Profit Centres A and B. A produces two components 'AC' and PC' and has a maximum capacity of 1,20,000 hours per annum, which can be used for AC or PC. The following information is given: Details Division A Division B AC PC RAC Direct Material / unit 25 10 100 Imported Component (equivalent of AC) / unit 450 Direct Labour and Variable Overhead / unit @ 50/hour 200 50 @