The Managerial Accountant at the Snowboard Factory Reported That the Company

The managerial accountant at the Snowboard Factory reported that the company makes internal transfers at 150% of full cost.The Wood Refining Division purchases 35,000 slabs of wood per day,on average,from a local supplier,who delivers wood for $50 per slab via an external shipper.To reduce costs,the company located an independent supplier in Utah who is willing to sell 35,000 slabs of wood at a variable cost of $4.25 per slab.
Required
Compute the full cost of purchasing the wood from the Utah supplier and shipping it to the Wood Refining Division.

A) $1,525,000
B) $1,600,350
C) $1,625,950
D) $1,898,750
E) $1,925,460