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:

Electrical Activity

The movement of electrical charges or signals through a given medium, foundational for the functioning of the nervous system and the heart.

Brain

The complex organ located in the head responsible for controlling thoughts, memory, emotions, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Gastroesophageal Reflux

A digestive disorder where stomach acid or bile irritates the food pipe lining, often referred to as GERD.

Gastric Acid

The digestive fluid produced by the stomach, primarily composed of hydrochloric acid, which helps in food digestion.