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Wilson Crane is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials Direct labor $50.00 15.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $95.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. (a1) Your answer is correct. Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25) Variable overhead per unit Variable selling and administrative costs per unit eTextbook and Media Attempts: unlimited (a2) Blue, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000 windows during the coming year. Given the size of the order, Blue has requested a 35% volume discount on Wilson's normal selling price. The contribution lost from regular sales 25,000 units. Calculate the contribution from special order. (If net contribution is negative, enter amount with a negative sign, e.g.-5,285 or parentheses, eg. (5,285). Round answer to O decimal places, e.g. 8,971.) Net contribution from special order $

Wilson Crane is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials Direct labor $50.00 15.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $95.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. (a1) Your answer is correct. Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25) Variable overhead per unit Variable selling and administrative costs per unit eTextbook and Media Attempts: unlimited (a2) Blue, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000 windows during the coming year. Given the size of the order, Blue has requested a 35% volume discount on Wilson's normal selling price. The contribution lost from regular sales 25,000 units. Calculate the contribution from special order. (If net contribution is negative, enter amount with a negative sign, e.g.-5,285 or parentheses, eg. (5,285). Round answer to O decimal places, e.g. 8,971.) Net contribution from special order $

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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(a2) Current Attempt in Progress Wilson Crane is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials Direct labor $50.00 15.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $95.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. (a1) Your answer is correct. Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25.) Variable overhead per unit 7 Variable selling and administrative costs per unit eTextbook and Media 4 Attempts: unlimited Blue, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000 windows during the coming year. Given the size of the order, Blue has requested a 35% volume discount on Wilson's normal selling price. The contribution lost from regular sales 25,000 units. Calculate the contribution from special order. (If net contribution is negative, enter amount with a negative sign, e.g. -5,285 or parentheses, e.g. (5,285). Round answer to O decimal places, e.g. 8,971.) Net contribution from special order 69 $
Transcribed Image Text:(a2) Current Attempt in Progress Wilson Crane is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials Direct labor $50.00 15.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $95.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. (a1) Your answer is correct. Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25.) Variable overhead per unit 7 Variable selling and administrative costs per unit eTextbook and Media 4 Attempts: unlimited Blue, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000 windows during the coming year. Given the size of the order, Blue has requested a 35% volume discount on Wilson's normal selling price. The contribution lost from regular sales 25,000 units. Calculate the contribution from special order. (If net contribution is negative, enter amount with a negative sign, e.g. -5,285 or parentheses, e.g. (5,285). Round answer to O decimal places, e.g. 8,971.) Net contribution from special order 69 $
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