Q 8.21: Robert Scott Lumber Company has a Cutting Division that cuts red oak trees into boards and a Finishing Division that makes red oak boards into custom woodwork used in renovation of historic buildings. Costs per board foot for the Cutting Division are Direct Material $3.00 Direct Labor Variable overhead $ 0.75 Fixed overhead $ 0.20 1.25 The Cutting Division sells boards to external customers for $6.50 per board foot, but has capacity to sell to the Finishing Division as well. The Finishing Department has been purchasing lumber from an outside vendor for $6.50 per board foot. If the Cutting Department starts transferring lumber to the Finishing Department, calculate the minimum transfer price A $5.00 B $5.75 C)$6.25 D $6.50