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Company La Estrella de Beln obtains the following information from its accounting records related to its product: Finished product Direct Labor $ 8.00 / unit
Company La Estrella de Beln obtains the following information from its accounting records related to its product:
Finished product Direct Labor $ 8.00 / unit
Direct Materials $ 15.00 / unit
Indirect Fixed Costs $ 6.00 / unit
Indirect Variable Costs $ 8.00 / unit
The company internally transfers this product to another of its divisions. It also sells this product to external customers for $ 35. What will be the transfer price if the company uses the variable cost method?
a.$ 31
b. $ 23
c. $ 35
d. $ 25
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