The Engine Division Provides Engines for the Tractor Division of a Company

question 30

Multiple Choice

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

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

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Definitions:

Psychological Congruence

A state in which an individual's self-concept is aligned with their actual experiences, leading to a sense of authenticity and fulfillment.

Fully Functioning

A state in which an individual is able to utilize their abilities and resources to the fullest extent, often associated with high levels of self-actualization and well-being.

Emotional Conflicts

Situations where an individual experiences two or more conflicting emotions at the same time, leading to confusion or distress.

Insight Therapists

Therapists who focus on helping clients gain awareness of their unconscious thoughts and behaviors to foster healing and change.