Crystal Limited manufactures photo frames. The photo frames are assembled in the Frame Division. The half-finished frames are then transferred to the Finishing Division, where the glass and other components are installed. The standard cost for the company's A4 side frame is detailed as follows: Frame Division Finishing Division Direct material $4.50 $9.00 (exclude transfer) 4.50 9.00 22.50 Direct labour 6.00 9.00 19.50 Variable overhead Total The frame division can also sell half-finished frames to photo framing companies which install the glass and other components. The sales price of a half-finished frame is $24.00. The Finishing Division sells finished frames for $57.00 Required: (a) Assume that there is no spare capacity in the Frame Division, use the general transfer pricing rule to calculate the transfer price for half- finished frames. (2 marks) (b) Assume that there is spare capacity in the Frame Division. i. Use the general transfer pricing rule to calculate the transfer price for half-finished frames. (2 marks) ii. Assume that the predetermined fixed overhead rate in the division is 135 per cent of direct labour cost, calculate the transfer price for half-finished frames based on standard absorption cost plus 10 per cent markup. (2 marks) (c) Discuss the cost and benefits of decentralisation. (4 marks)