AquaShine Inc. has a number of divisions, including the Beige Division, a producer of fabric, and...
AquaShine Inc. has a number of divisions, including the Beige
Division, a producer of fabric, and the Purple Division, a fabric
painting division. The cost per yard of the cloth manufactured by
Beige Division of the AquaShine Inc. is as follows:
| Direct material | $28 |
| Direct labor | $5 |
| Variable overhead | $3 |
| Fixed overhead | $4 |
Calculate the transfer price if the company allows transfer pricing
at cost plus 10%.
a.$40
b.$47
c.$44
d.$36
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