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Cane Company manufactures two products called Alpha and Beta that sell for $ 1 2 0 and $ 8 0 , respectively . Each product
Cane Company manufactures two products called Alpha and Beta that sell for $
and $
respectively Each product uses only one type of raw material that costs $
per pound. The company has the capacity to annually produce
units of each product. Its average cost per unit for each product at this level of activity is given below:
Alpha Beta
Direct materials $
$
Direct labor
Variable manufacturing overhead
Traceable fixed manufacturing overhead
Variable selling expenses
Common fixed expenses
Total cost per unit $
$
The company
s traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
Required:
What is the total traceable fixed manufacturing overhead for each of the two products?
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