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

question 73

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 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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Psychological Barrier

Mental or emotional resistance that inhibits a person from accepting, understanding, or acting upon a new idea or behavior.

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