Question
Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material
Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its unit costs for each product at this level of activity are given below
Alpha | Beta | |||||||
Direct materials | $ | 42 | $ | 21 | ||||
Direct labor | 35 | 28 | ||||||
Variable manufacturing overhead | 23 | 21 | ||||||
Traceable fixed manufacturing overhead | 31 | 34 | ||||||
Variable selling expenses | 28 | 24 | ||||||
Common fixed expenses | 31 | 26 | ||||||
Total cost per unit | $ | 190 | $ | 154 |
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1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? 2. |
What is the companys total amount of common fixed expenses 4.
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