Chemical Company Has Two Divisions,the Mixing Division and Bottling Division

Multiple Choice

Chemical Company has two divisions,the Mixing Division and Bottling Division.The Mixing Division sells chemicals to the Bottling Division. Standard costs for the Mixing Division are as follows:
$\begin{array}{llcc} \text { Direct materials} & \text {\( \$ 3.00 \) per litre } \\ \text {Direct labour } & \text { 2.40 per litre }\end{array}$

The Bottling Division uses the following predetermined overhead rate:
$\begin{array}{llcc} \text { Variable overhead } & \text { \( \$ 3.60 \) per litre } \\\text { Fixed overhead } & \text { 2.40 per litre } \\\text { Total } & \text { \( \$ 6.00 \) per litre } \\\end{array}$
What is the transfer price for the chemicals per litre based on standard variable cost?

A) $3.00
B) $5.40
C) $9.00
D) $11.40