Notre Company transfers a product from division N to division R. Variable cost of this product is anticipated to be P40 a unit and total fixed costs amount to P8,000. A total of 100 units are anticipated to be produced. Actual cost, however, amounts to P50 for variable costs. Fixed costs expected to continue as budgeted. However, the actual output is twice as the number of budgeted. The transfer price based on budgeted full cost plus 30% markup amounts to A. P117 B. P140 C. P150 D. P156

Notre Company transfers a product from division N to division R. Variable cost of this product is anticipated to be P40 a unit and total fixed costs amount to P8,000. A total of 100 units are anticipated to be produced. Actual cost, however, amounts to P50 for variable costs. Fixed costs expected to continue as budgeted. However, the actual output is twice as the number of budgeted. The transfer price based on budgeted full cost plus 30% markup amounts to A. P117 B. P140 C. P150 D. P156

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 13E

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