Question
The Component Division provides electronic parts for the Equipment Division of a company. The standard unit costs and market price for the Component Division are:
The Component Division provides electronic parts for the Equipment Division of a company. The standard unit costs and market price for the Component Division are:
| Direct materials | $ 700 |
| Direct labour | $1,300 |
| Variable overhead | $400 |
| Fixed overhead | $200 |
| Market price per unit | $3,200 |
The Component Division has excess capacity. What is the best transfer price to avoid transfer price problems?
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Introduction To Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
5th Edition
0073527009, 9780073527000
