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How much is the transfer price for one unit of the battery

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Question - CWB Inc. has two divisions: the vehicle division and the battery division. The vehicle division currently purchases batteries internally from the battery division. The transfer price is determined by the cost-plus method: the full manufacturing cost plus a 12% markup.

Battery Division (production volume: 20,000 batteries)

Direct material $44,500

Direct labor $32,915

Manufacturing overhead $60,073

SG&A $20,018

Based on the costing sheet for the 20,000 batteries above, how much is the transfer price for one unit of the battery?

Reference no: EM133180851

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