Check my wo Required information (The following information applies to the questions displayed below] 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 average cost per unit for each product at this level of activity are given below Alpha Beta Direct materials $ 30 $12 Direct labor 20 15 Variable manufacturing overhead traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 Connon tixed expenses 10 Total cost per unit 5100 $68 7 5 15 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 3. Assume that one expects to produce and sell 80,000 Aiphas during the current year. One of Cone's sales representatives hos found a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Financial advantage 5 2.500.000 Required information The following information applies to the questions displayed below) 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 average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $12 Direct labor 20 15 Variable manufacturing overhead 5 traceable fixed manufacturing overhead 16 18 Variable selling expenses Common fixed expenses 10 Total cost per unit $100 8 12 15 568 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 2. What is the company's total amount of common fixed expenses? Tout common todoxpune $2.500.000 Required information (The following information applies to the questions displayed below.) 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 average cost per unit for each product at this level of activity are given below Alpha $ 30 20 Beta $12 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 16 12 15 $100 18 B 10 $68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Alpha Beta Traceable fixed manufacturing overhead 1,500,000 1,800,000
