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The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: Direct materials $ 600 Direct

The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are:

Direct materials

$ 600

Direct labor

1,200

Variable overhead

300

Fixed overhead

150

Market price per unit

2,730


What is the transfer price based on full cost plus a markup of 30 percent?

a.$585
b.$2,925
c.$2,760
d.$2,730

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