Question: The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: Direct materials $ 600 Direct

The Engine Division provides engines for the Tractor Division of a

The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: Direct materials $ 600 Direct labor 450 Variable overhead 300 Fixed overhead 150 Market price per unit 2,730 The engine department has excess capacity. What is the best transfer price to avoid transfer price problems? $300 $900 $1,350 $2,100

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