Figure 20-7
the Engine Division Provides Engines for the Tractor

question 41

Multiple Choice

Figure 20-7
The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are as follows: $\begin{array}{lr}\text { Direct materials } & £ 600 \\\text { Direct labour } & 1,200 \\\text { Variable overhead } & 300 \\\text { Fixed overhead } & 150 \\\text { Market price per unit } & 2,730\end{array}$
-Refer to Figure 20-7. What is the best transfer price to avoid transfer price problems?

• A)£2,730
• B)£600
• C)£1,800
• D)£2,100

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Definitions:

Nail Bed

Epithelial tissue resting on dermis under the nail between the nail matrix and hyponychium; contributes to the formation of the nail.

Hyponychium

Thickened portion of the stratum corneum under the free edge of the nail.

Cuticle

The outer layer of living tissue, especially in plants, acting as a protective barrier. In humans and animals, it often refers to the outer layer of skin or the protective layer around the nail or hair.

Eponychium

Outgrowth of the skin that covers the proximal and lateral borders of the nail; also called cuticle.