irect material irect labor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What would be the transfer price if Division X uses full absorption cost plus markup?
Transcribed Image Text:NUBD Company had the following historical accounting data per unit:
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling expenses
Fixed selling expenses
P60
30
15
24
45
6.
The units are normally transferred internally from Division X to Division Y. The units
also may be sold externally for P210 per unit. The minimum profit level accepted by
the company is a markup of 25 percent. There were no beginning or ending
inventories.
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