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Determine what would be the unit transfer price

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Question - Pontiac Company's Division Y had the following historical accounting data per unit based on 6,000 units per period:

Direct labor                                          $14

Direct materials                                    26

Variable manufacturing overhead            8

Variable selling expenses                       10

Fixed manufacturing costs were $75,000. Pontiac transfers internally from Division Y to Division Z.   Pontiac may also sell the transferred units externally for $85 per unit. If Division Y transfers 6,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

Reference no: EM131812236

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