Question
The Chasis Division provides frames for the Tractor Division of a company. The standard unit costs for the Chasis Division are as follows: Direct materials
The Chasis Division provides frames for the Tractor Division of a company. The standard unit costs for the Chasis Division are as follows:
| Direct materials | $ 800 |
| Direct labor | 1,500 |
| Variable overhead | 400 |
| Fixed overhead | 350 |
| Market price per unit | 4,575 |
What is the transfer price based on full cost plus a markup of 20 percent?
a.$3,660
b.$5,490
c.$3,240
d.$4,575
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
4th Edition
9781934319345
