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Chemical Company Has Two Divisions, the Mixing Division and Bottling

Question 3

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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:
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: The Bottling Division uses the following predetermined overhead rate: What is the transfer price for the chemicals per gallon based on standard variable cost? A) $3.00 B) $5.40 C) $9.00 D) $11.40 The Bottling Division uses the following predetermined overhead rate:
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: The Bottling Division uses the following predetermined overhead rate: What is the transfer price for the chemicals per gallon based on standard variable cost? A) $3.00 B) $5.40 C) $9.00 D) $11.40 What is the transfer price for the chemicals per gallon based on standard variable cost?


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

Correct Answer:

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