Problem 8-21

Wayne Windows, Inc. is a leading producer of vinyl replacement windows. The companys 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 400,000 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		$37
Direct labor		17
Manufacturing overhead		23
Selling and administrative		14
Total unit cost		$91

The companys budget includes $5,250,000 in fixed overhead and $3,230,000 in fixed selling and administrative expenses. The windows sell for $142 each. A 2% distributors commission is included in the selling and administrative expenses.

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 9.88 5.93 SHOW SOLUTION LINK TO TEXT