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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:  Direct materials $700 Direct labour 1,300 Variable overhead 400 Fixed overhead 250 Market price per unit 2,730\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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