eathermaster Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The companys best-selling product is a three-by-four-foot, doublepaned operable window. The Frame Division can also sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $160. The Glass Division sells its finished windows for $380. The markets for both frames and finished windows exhibit perfect competition. The standard cost of the window is detailed as follows:

Division Division Direct material Direct labor Varlable overhead S 30 60 $130 $ 60 30 60 40 Total $150 Not including the transfer price for the frame. velue 1.00 points Assume that there is no excess capacity in the Frame Division. Required 1-a. Use the general rule to compute the transfer price for window frames. Transfer price 1-b. Calculate the transfer price if it is based on standard variable cost with a 10 percent markup. Transfer 2-a. Assume that there is excess capacity in the Frame Division. Use the general rule to compute the transfer price for window frames 2-c. Suppose the predetermined fixed-overhead rate in the Frame Division is 125 percent of direct-labor cost. Calculate the transfer price if it is based on standard full cost plus a 10 percent markup. price 2-d. The Glass Division has been approached by the U.S. Army with a special order for 1,000 windows at S310. Assume the transfer price established in requirement 2-c. above is being used. () What is the incremental contribution (loss) per window for Weathermaster Window Company as a whole if this special order is accepted? tribution (loss) per window (ii) From the perspective of Weathermaster Window Company as a whole, should the special order be accepted or rejected? Accepted 2-e. The Glass Division has been approached by the U.S. Amy with a special order for 1,000 windows at S310. Assume the transfer price established in requirement 2-c. above is being used ) What is the incremental contribution (loss) per window for the Glass Division if this special order is tribution (loss) per window