Division A of ABC, Inc. produces part TZ20 that is used by Division B in the manufacture of product 100BD. Below is a summary of the manufacturing costs of the TZ20 part:

Direct Labour	$8.00	per unit
Direct materials	15.00	per unit
Indirect Fixed Costs	6.00	per unit
Indirect Variable Costs	2.00	per unit

Division A also sells this part to customers outside the company for $35 each

What will be the transfer price if Division A uses the full cost method to sell to Division B?

a. 31

b. 25

c. 21

d. 35

Answer rating: 100% (QA)

If Division A uses the full cost method to sell to Division B the transfer price will ... View the full answer