The Engine Division Provides Engines for the Tractor Division of a Company.The

Multiple Choice

The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 700 \\\text { Direct labour } & 1,300 \\\text { Variable overhead } & 400 \\\text { Fixed overhead } & 350 \\\text { Market price per unit } & 2,730\end{array}$$ What is the transfer price that is based on full cost plus a markup of 35%?

A) $585.00
B) $2,730.50
C) $2,760.00
D) $3,577.50