Wilson Sandhill 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 Selling and administrative Total unit cost (a1) $60.00 Variable overhead per unit 17.00 19.00 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. eTextbook and Media 14.00 $110.00 Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25.) $ Variable selling and administrative costs per unit $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wilson Sandhill 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
Selling and administrative
Total unit cost
(a1)
$60.00
Variable overhead per unit
17.00
19.00
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.
eTextbook and Media
14.00
$110.00
Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g.
15.25.)
$
Variable selling and administrative costs per unit
$
Transcribed Image Text:Wilson Sandhill 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 Selling and administrative Total unit cost (a1) $60.00 Variable overhead per unit 17.00 19.00 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. eTextbook and Media 14.00 $110.00 Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25.) $ Variable selling and administrative costs per unit $
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