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Overton Company uses cost - based transfer pricing. Its Food Processing Division has a standard variable cost of $ 1 0 . 1 0 per

Overton Company uses cost-based transfer pricing. Its Food Processing Division has a standard variable cost of $10.10 per case and allocated fixed overhead of $3.05. The Processing Division, which has excess capacity, sells its output to external customers for $13.60 per case. If Overton uses full (or absorption) cost as its base, what should the transfer price charged to its Retail Division be?:

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