Hydroxide Company Has Two Divisions, the Blending Division and Canning $\begin{array} { l } \text {Direct materials }& \text {\( \$ 3.00 \) per gallon }\\ \text {Direct labor }& \text {2.40 per gallon }\\\end{array}$

Hydroxide Company has two divisions, the Blending Division and Canning Division. The Blending Division sells chemicals to the Canning Division. Standard costs for the Blending Division are as follows: $\begin{array} { l } \text {Direct materials }& \text {\( \$ 3.00 \) per gallon }\\ \text {Direct labor }& \text {2.40 per gallon }\\\end{array}$

The Canning Division uses the following predetermined overhead rate: $\begin{array} { l } \text {variable overhead }& \text {\$ 3.60 per gallon}\\ \text {Fixed overhead }& \text {2.40 per gallon}\\ \text { Total }& \text {\$ 6.00 per gallon} \\\end{array}$

What is the transfer price for the chemicals per gallon based on standard variable cost?

A) $3.00
B) $9.00
C) $5.40
D) $11.40