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The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal...

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Accounting

The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include:

Outside Sales Price $640

Direct Materials 105

Direct Labor 250

Fixed overhead 180

If Mukilteo has excess capacity available to meet an internal order, what transfer price should be set?

If Mukilteo is operating at full capacity and selling solely to outside customers, what price should another division pay for Mukilteos product?

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