Question
Garrison Managerial Accounting pg. 560 #3. Do traceable fixed manufacturing overhead and common fixed costs have to be used in answer to this question? Please
Garrison Managerial Accounting pg. 560 #3. Do traceable fixed manufacturing overhead and common fixed costs have to be used in answer to this question? Please answer problem for me. I submitted this problem at 9:10 am and have not received an answer.
3. Assume that Cane expeects to produce and sell 80,000 alphas during the current year. One of Cane's sales representatives had found a new customer that is willing to buy 10,000 additional alphas for a price of $80 per unit. If Cane accepts the customer's offer, how much willits profits increase or decrease?
Cane Co. manufactures 2 products called aplha and beta that sell for $120 and $80 respectively. Each product uses only one type of raw meterial that costs $6 per pound. The company had the capacity to annually produce 100,000 units of each product.
Alpha:
Direct materials $30, Direct Labor $20, Variable Manuf OH $7, Traceable Fixed manuf OH $16, Variable Selling and Admin, $12, common fixed expenses $15, Total $100. Company considers traceable fixed manuf overhead to be avoidable and common fixed are unavoidable and allocated based on sales $.
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