Wilson Cullumber is a leading producer of vinyl replacement windows. The company's growth strategy focuses on...
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Wilson Cullumber 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 $40.00 18.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $88.00 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 Wilson Cullumber 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 $40.00 18.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $88.00 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
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