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Cane Company manufactures two products called Alpha and Bets that sell for $150 and $110, respectively. Each product uses only one type of raw material
Cane Company manufactures two products called Alpha and Bets that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $15 Direct labour Variable manufacturing overhead 13 11 Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 26 22 22 18 21 5 10 24 14 16 $ 182 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 Required: What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beto product line Alpha Beta Traceable foxed manufacturing overhead
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