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What Is the Transfer Price Per Unit for the Component

Question 33

Multiple Choice

What is the transfer price per unit for the component based on standard variable cost?
Ponderosa Inc. has two divisions, X and Y. Division X sells a component to Division Y. There is no external market for Division X's component. X's standard costs are as follows:
What is the transfer price per unit for the component based on standard variable cost? Ponderosa Inc. has two divisions, X and Y. Division X sells a component to Division Y. There is no external market for Division X's component. X's standard costs are as follows:    A)  $23 B)  $18 C)  $15 D)  None of the above


A) $23
B) $18
C) $15
D) None of the above

Correct Answer:

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