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Help mamp Company manufactures only one type of machine and has two divisions Compressor and Fabrication. The Compressor Division manufactures compressors for the Fabrication Division,

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Help mamp Company manufactures only one type of machine and has two divisions Compressor and Fabrication. The Compressor Division manufactures compressors for the Fabrication Division, which complete achine and sells it to retailers. The Compressor Division Currently transfers compressors internally to the Fabrication Division. The market price for a compressor is $40.00 Current capacity for Champ Company 1000 machines Compressor's costs per compressorare: Direct materials Direct labor Vale overhead $16.00 $8.50 $2.50 $750 Division foxed costs Fabrication's costs per completed air conditioner are: Direct labor Variable overhead Division foxed costs $150.00 562.55 S2000 $750 Assume the transfer price for a compressor is 150 operating income of total costs of the Compressor Division and 1,000 of the compressors are produced and transferred to the Fabrication Division The Compressor Division's Multiple Choice 0 0 0

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