The engine division provides engines for the tractor division of a company. the standard unit costs for the engine division are: direct materials $700 direct labor 1,300 variable overhead 400 fixed overhead 200 market price per unit 3,200 the engine division has excess capacity. what is the best transfer price to avoid transfer price problems? a. $2,400 b. $900 c. $300 d. $1,350

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be: