ot Test:Test 3 This n: 2 pts This Test: 50 pts Flush E- Card Manufacturing manuf

Question

ot Test:Test 3 This n: 2 pts This Test: 50 pts Flush E- Card Manufacturing manufactures software parts for the computer software systems that produce-cards has excess capacily to produce the Fash l part. The oument market price of the Fash ll pt i 00The manageralcuntant orted Flash E-Card Manufacturin? Costs and Variable Expense Report Direct labor $130 g overhead g overhead (ourrent production level) $135 Variable selling expensos (only ncurred on sales to outside consumens) t the highest acceptable transfer price is $800 in the market, what is the lowest acceptable in O A 5200 B. $790 O C. $1,120 O D. $130

Explanation / Answer

Answer:C.$1120

Lowest acceptable in house price the data department should receive:

Direct Materials + Direct labour + Variable Manufacturing overhead = 790 + 130 + 200 = $1120

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