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

question 135

Multiple Choice

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

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

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Definitions:

Peerless

Unique and having no equal; often used in legal contexts to describe something that has no identical counterpart.

Breach Of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.

Mistake In Meaning

A misunderstanding or misinterpretation of terms or conditions in a contract that can affect the validity of the agreement.

Mistake Of Law

A misunderstanding or incorrect interpretation of the law by an individual, which does not generally excuse compliance.