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:

Squirrel-Cage Rotor

The rotor of an AC induction motor constructed by connecting metal bars together at each end.

Rotor Bars

Conductive bars typically found in the rotor of an induction motor, which carry current to produce a magnetic field that interacts with the stator field.

Starting Torque

The torque an electric motor generates to start a load moving.

Selsyn Motors

Special motors that can be employed to provide angular feedback information or control the rotation of devices at a distance.