Pontiac companys division y had the following historical, Ask an Expert

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Pontiac Company's Division Y had the following historical accounting data per unit based on 6,000 units per period:

Direct labor .
$14
Direct materials 26
Variable manufacturing overhead 8
Variable selling expenses 10

Fixed manufacturing costs were $75,000. Pontiac transfers internally from Division Y to Division Z. Pontiac may also sell the transferred units externally for $85 per unit. If Division Y transfers 6,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9415816

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