1. Axelia Corporation has two divisions, Refining and Extraction. The company's primary product is Luboil Oil. Each division's costs are provided below: Extraction: Variable costs per barrel of oil $10 Fixed costs per barrel of oil $8 Refining: Variable costs per barrel of oil $26 Fixed costs per barrel of oil $38 The Refining Division has been operating at a capacity of 40,300 barrels a day and usually purchases 25,400 barrels of oil from the Extraction Division and 15,100 barrels from other suppliers at $64 per barrel. What is the transfer price per barrel from the Extraction Division to the Refining Division, assuming the method used to place a value on each barrel of oil is 130% of full costs?
   1. 23.40
   2. 21.60
   3. 83.20
   4. 13.00
   5. 10.40