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

question 97

Multiple Choice

The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 700 \\\text { Direct labour } & 1,300 \\\text { Variable overhead } & 400 \\\text { Fixed overhead } & 350 \\\text { Market price per unit } & 2,730\end{array}$$ What is the transfer price that is based on full cost plus a markup of 35%?

• A) $585.00
• B) $2,730.50
• C) $2,760.00
• D) $3,577.50

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Definitions:

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The process by which the ovaries release one ovum (egg) approximately every 28 days.

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