Evergreen Corp

question 83

Multiple Choice

Evergreen Corp.has two divisions,Fern and Bark.Fern produces a widget that Bark could use in the production of units that cost $175 in variable costs,plus the cost of the widget,to manufacture.Fern's variable costs are $60 per widget,and fixed manufacturing costs are applied at a rate of $36 per widget.Widgets sell on the open market for $105 each.Evergreen's policy is that internal transfers will be made at variable cost plus 20%.If Bark purchases the widgets from Fern,what will be the transfer price?

• A)$72.00
• B)$115.20
• C)$126.00
• D)$210.00

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Definitions:

Tailgating

An unauthorized person following an authorized individual to enter a secure area, bypassing physical security measures.

Mantrap

A security mechanism consisting of two or more interlocking doors, which regulates access into a secure area, one person at a time.

Security Cameras

Video recording devices used for monitoring and ensuring the security of a designated area.

ESD Strap

An item that fits around a technician’s wrist and connects to an electronic component so that the technician and the component are at the same voltage potential, thus preventing an electrostatic discharge event.