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The Propeller Division provides propellers for the Plane Division of a company. The standard unit costs for the Propeller Division are as follows: Direct materials

The Propeller Division provides propellers for the Plane Division of a company. The standard unit costs for the Propeller Division are as follows: Direct materials $ 890 Direct labor 1,590 Variable overhead 575 Fixed overhead 385 Market price per unit 4,395 The propeller department has excess capacity. What is the best transfer price to avoid transfer price problems? a. $3,055 b. $955 c. $1,340 d. $2,865

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