Question
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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Fundamentals of Cost Accounting
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