The Engine Division Provides Engines for the Final Assembly Division

question 18

Multiple Choice

The Engine Division provides engines for the Final Assembly Division of a company. The standard unit costs for the Engine Division are as follows: $\begin{array} { l } \text {Direct materials }&\$600\\ \text { Direct labor}&1,200\\ \text {Variable overhead }&300\\ \text {Fixed overhead }&150\\ \text { Market price per unit}&2,730\\\end{array}$
What is the transfer price based on variable product costs plus a fixed fee of $210?

• A)$210
• B)$1,800
• C)$2,100
• D)$2,310

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