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 incorrect. Try again Calculate variable overhead per unit and variable seling and administrative costs per unit. (Round answers to 2 decimal places, e.g. 15.25.) Variable averhead per unt ariable zeling and administrative costs per unit 16 vour answer is partialy correct. Try again. Nordic has equested a 40% lume discount on Weyne's normal seling price. Should we e grant Nordic's Nordic Vistas. No's second la gest homebuilder has a proeched wen e ith an offer to buy 78.900 indo s during the coming year, G ven the size of the o de request? (Round answer to 0 decimal places. e.g8.971.) Total contribution from special order 457,62 vour answer is incorrect. Try again. e housing unts throughout the state Ryster needs 125,000 windows to complate the job and has offered to buy them from Wayne a: a price of Raturn to the original daa. Ryster Remodeing has just signed a contract with the state govermment to replace the windowsin 105 per window Ryster wil pick up the windows at Waynes plant, so Wayne will not incur the S2 per window shipping charge. In addiion, Wayne will not need to pay a distributors commizsion, since the windows will not be old through a diztributor Calculace the contribution from special ordec contribution from regular sales and the net contribution from special order Contribution from special order 2.000,000 Contribution lost from forgone regular sales 1,204,000 Net contrbution from special order 796,000