Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for

please help!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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 8 Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5.40 34 21 29 26 29 $129 Beta 5 24 28 19 32 22 24 $149 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? Total common fixed expenses S h 6 Foundational 15 Saved Help Save & E Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Comon fixed expenses Total cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $24 28 19 32 22 24 $149 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 Cane expects to produce and sell 94.000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 24,000 additional Alphas for a price of $136 per unit What is the financial advantage (disadvantage) of accepting the new customer's order? Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable nanufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 34 21 29 26 29 $179 Beta 5 24 28 19 32 22 24 $149 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. 4. Assume that Cane expects to produce and sell 104,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 3,000 additional Betas for a price of 562 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Common fixed expenses Total cost per unit 29 $179 24 $149 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. 5. Assume that Cane expects to produce and sell 109,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 24,000 additional Alphas for a price of $136 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 11,000 units a. What is the financial advantage disadvantage) of accepting the new customer's order? b. Based on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below. Reg SA Reg 58 What is the financial advantage (disadvantage) of accepting the new customer's order? Hes Reg 58 Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Connon fixed expenses Total cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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 6. Assume that cane normally produces and sells 104.000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line? Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $.40 34 21 29 26 29 $179 Beta 5.24 28 19 32 22 24 $149 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 7 Assume that Cane normally produces and sells 54.000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line? Saved Sundational 15 Save & Exit Help Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5.40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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 8. Assume that Cane normally produces and sells 74.000 Betas and 94,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 14,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for S190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Direct materials Direct Labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 34 21 39 26 29 $179 Beta 5.24 28 19 32 22 24 $149 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 9. Assume that Cane expects to produce and sell 94,000 Alphas during the current year. A supplier has offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 94,000 units from the supplier instead of making those units? Save & Exit Su Ch 6 Foundational 15 Help [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and 5155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Cornon fixed expenses Total cost per unit Alpha 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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. 10. Assume that Cane expects to produce and sell 69,000 Alphas during the current year. A supplier has offered to manufacture and deliver 69,000 Alphas to Cane for a price of 5136 per unit What is the financial advantage (disadvantage) of buying 69,000 units from the supplier instead of making those units? Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traccable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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 11 How many pounds of raw material are needed to make one unit of each of the two products? Alpha Beta Pounds of raw materials per un ED Ch 6 Foundational 15 Help EN SUD Required information (The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and 5155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below. 55 0619 Direct materials Direct Labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Con fixed expenses Total cost per unit Alpha 340 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common foxed expenses are unavoidable and have been allocated to products based on sales dollars What contribution margin per pound of raw material is eamed by cach of the two products? (Round your answers to 2 decimal places.) Alphi Contribution margin per pound Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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. 13. Assume that Cane's customers would buy a maximum of 94.000 units of Alpha and 74.000 units of Beta Also assume that the company's raw material available for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced 7 Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below of 15 Beta 5 24 28 19 05 44 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5.40 34 21 29 26 29 $179 22 24 5149 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. 14. Assume that Cane's customers would buy a maximum of 94.000 units of Alpha and 74,000 units of Beta Also assume that the company's raw material available for production is limited to 228,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials? Total contribution Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 5149 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. 15. Assume that Cane's customers would buy a maximum of 94.000 units of Alpha and 74,000 units of Beta. Also assume that the company's raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) Maximum price to be paid perpend

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Transformation In Accounting

Authors: Richard Busulwa, Nina Evans

1st Edition

0367362090, 9780367362096

More Books

Students also viewed these Accounting questions

Question

Find the length of the curve. x = 2 + 3t, y= cosh 3t, 0

Answered: 1 week ago