Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5,040 units are as follows. Per Unit Total Direct materials $ 110 Direct labor $ 70 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 151,200 Variable selling and administrative expenses $ 10 Fixed selling and administrative expenses $ 128,520 Blue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,280,160 in assets is committed to production of the new tinted window.
Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5,040 units are as follows. Per Unit Total Direct materials $ 110 Direct labor $ 70 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 151,200 Variable selling and administrative expenses $ 10 Fixed selling and administrative expenses $ 128,520 Blue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,280,160 in assets is committed to production of the new tinted window.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...
Question
![Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the
window at a budgeted volume of 5,040 units are as follows.
Per Unit
Total
Direct materials
$ 110
Direct labor
$ 70
Variable manufacturing overhead
$ 10
Fixed manufacturing overhead
$ 151,200
Variable selling and administrative expenses
$ 10
Fixed selling and administrative expenses
$ 128,520
Blue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window
line. A total of $1,280,160 in assets is committed to production of the new tinted window.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc780c603-d813-465e-aacf-250882005140%2F476b0d45-81fb-45ae-81dc-b22a96030277%2Fzc6ul4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the
window at a budgeted volume of 5,040 units are as follows.
Per Unit
Total
Direct materials
$ 110
Direct labor
$ 70
Variable manufacturing overhead
$ 10
Fixed manufacturing overhead
$ 151,200
Variable selling and administrative expenses
$ 10
Fixed selling and administrative expenses
$ 128,520
Blue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window
line. A total of $1,280,160 in assets is committed to production of the new tinted window.
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