Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively. Each product uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$ units of each product. Its unit costs for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $30$ $ $12$

Direct labour $2015$

Variable manufacturing overhead $75$

Traceable fixed manufacturing overhead $1618$

Variable selling expenses $128$

Common fixed expenses $1510$

Cost per unit $ $100$ $ $68$

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

$2.$ What is the company$$s total amount of common fixed expenses?Required information

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Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively. Each product

uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$

units of each product. Its unit costs for each product at this level of activity are given below:

Direct materials

Direct labour

Variable manufacturing overhead

Traceable fixed manufacturing overhead

Variable selling expenses

Common fixed expenses

Cost per unit

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses

are deemed unavoidable and have been allocated to products based on sales dollars.

What is the company's total amount of common fixed expenses?