The Sliver Coast Division of Harvey Ltd produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: $\begin{array}{llcc}
\text { Outside salesprice} &\$640 \
\text { Direct materials } &105\
\text { Direct labour } &250\
\text {Fixed overhead } &180\
\end{array}$

If the Silver Coast Division has excess capacity available to meet an internal order, what transfer price should be set?
A) $355
B) $430
C) $625
D) $285

Question

The Sliver Coast Division of Harvey Ltd produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: $\begin{array}{llcc}
  \text {  Outside salesprice} &\$640  \
 \text { Direct materials } &105\
 \text { Direct labour } &250\
 \text {Fixed overhead  } &180\
\end{array}$

If the Silver Coast Division has excess capacity available to meet an internal order, what transfer price should be set?
A) $355
B) $430
C) $625
D) $285

Quizplus · Accepted Answer

The Answer of The Sliver Coast Division of Harvey Ltd produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: $\begin{array}{llcc}
  \text {  Outside salesprice} &\$640  \
 \text { Direct materials } &105\
 \text { Direct labour } &250\
 \text {Fixed overhead  } &180\
\end{array}$

If the Silver Coast Division has excess capacity available to meet an internal order, what transfer price should be set?
A) $355
B) $430
C) $625
D) $285

The Sliver Coast Division of Harvey Ltd Produces and Sells