. Clearview Window Company manufactures windows for the home-building industry. The window frames are produced in the...

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Clearview 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 company's best-selling product is a three-by-four-foot, double-paned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $185. The Glass Division sells its finished windows for $520. The markets for both frames and finished windows exhibit perfect competition. The standard variable cost of the window is detailed as follows: Frame Division Glass Division Direct material Direct labor Variable overhead Total $ 44 $ 56* 50 44 56 56 $ 150 $ 156 *Not including the transfer price for the frame. Clearview 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 company's best-selling product is a three-by-four-foot, double-paned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $185. The Glass Division sells its finished windows for $520. The markets for both frames and finished windows exhibit perfect competition. The standard variable cost of the window is detailed as follows: Frame Division Glass Division Direct material Direct labor Variable overhead Total $ 44 $ 56* 50 44 56 56 $ 150 $ 156 *Not including the transfer price for the frame.

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