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 Manufacturing overhead $50.00 15.00 16.00 Selling and administrative Total unit cost 14.00 $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.) 4 Variable overhead per unit 7 Variable selling and administrative costs per unit eTextbook and Media (a2) Your answer is partially correct. 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.)
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 Manufacturing overhead $50.00 15.00 16.00 Selling and administrative Total unit cost 14.00 $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.) 4 Variable overhead per unit 7 Variable selling and administrative costs per unit eTextbook and Media (a2) Your answer is partially correct. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Manufacturing overhead
$50.00
15.00
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
(a2)
69
9
4
7
Attempts: unlimited
-Your answer is partially correct.
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
241250
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