Business, 17.12.2021 01:50 esheagustafson

Overton Company uses cost-based transfer pricing. Its Food Processing Division has a standard variable cost of $9.30 per case and allocated fixed overhead of $2.65. The Processing Division, which has excess capacity, sells its output to external customers for $12.80 per case. If Overton uses full (or absorption) cost as its base, the transfer price charged to its Retail Division should be: Multiple Choice $15.45. $12.80. $11.95. $9.30 plus a markup. negotiated between the managers of the Processing and Retail Divisions.

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Overton Company uses cost-based transfer pricing. Its Food Processing Division has a standard variab...