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

question 92

Multiple Choice

Engine Division
Engine Division provides engines for Tractor Division of a company. The standard unit costs for Engine Division are as follows: $$\begin{array} { l l } \text { Direct materials } & \$ 700 \\\text { Direct labour } & 1,300 \\\text { Variable overhead } & 400 \\\text { Fixed overhead } & 250 \\\text { Market price per unit } & 2,730\end{array}$$
-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:

LLP Statutes

Laws that govern Limited Liability Partnerships, providing rules on formation, operation, and liabilities of partners in an LLP.

RUPA

The Revised Uniform Partnership Act, which is legislation adopted by various states in the United States to regulate the operations of partnerships.

Liability

Legal responsibility for one's actions or for a device, product, or process that can cause harm, leading to the obligation to make restitution.

Implied Authority

The power of an agent to perform acts that are reasonably necessary to accomplish the purpose of an agency agreement.