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:
The Canning Division uses the following predetermined overhead rate:
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

Question

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:
 The Canning Division uses the following predetermined overhead rate:
 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

Quizplus · Accepted Answer

The Answer of 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:
 The Canning Division uses the following predetermined overhead rate:
 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

Hydroxide Company Has Two Divisions, the Blending Division and Canning