Problem 1-24 (Static) Different Cost Classifications for Different Purposes [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5] Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense. Total administrative expense $ 15,000 28,000 $ 12,000 18,000 a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? $ 4,000 25,000 b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: $ 69,000 $ 35,000 c. What is the total conversion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior: $ 43,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? $ 30,000 $ 29,000

14. Assume that Cane's customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the raw material available for production is limited to 161,000 pounds. What is the total contribution margin Cane Company will earn? 9. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. A supplier has offered to manufacture and dellver 81,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 81,000 units from the supplier instead of making those units? 3. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 10. Assume that Cane expects to produce and sell 51,000 Alphas during the current year. A supplier has offered to manufacture and dellver 51,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 51,000 units from the supplier instead of making those units? 5. Assume that Cane expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 6,000 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. What is the financial advantage (disadvantage) of accepting the new customer's order? 6. Assume that Cane normally produces and sells 91,000 Betas per year. What is the financial advantage (disadvantage) 0 discontinuing the Beta product line? 4. Assume that Cane expects to produce and sell 91,000 Betas during the current year, One of Cane's sales representatives has found a new customer who is willing to buy 6,000 additional Betas for a price of $40 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 13. Assume that Cane's customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the raw material available for production is limited to 161,000 pounds. How many units of each product should Cane produce to maximize its profits? 8. Assume that Cane normally produces and sells 61,000 Betas and 81,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 16,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 2. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal blaces.) 7. Assume that Cane normally produces and sells 41,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 11. How many pounds of raw material are needed to make one unit of each of the two products? 15. Assume that Cane's customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the company's raw material available for production is limited to 161,000 pounds. If Cane uses its 161,000 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.) Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this lovel of activity are given below: 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 81,000 units of Alpha and 61,000 units of Beta. Also assume that the raw material available for production is limited to 161,000 pounds. What is the total contribution margin Cane Company will earn? 9. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. A supplier has offered to manufacture and dellver 81,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 81,000 units from the supplier instead of making those units? 3. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 10. Assume that Cane expects to produce and sell 51,000 Alphas during the current year. A supplier has offered to manufacture and dellver 51,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 51,000 units from the supplier instead of making those units? 5. Assume that Cane expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 6,000 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. What is the financial advantage (disadvantage) of accepting the new customer's order? 6. Assume that Cane normally produces and sells 91,000 Betas per year. What is the financial advantage (disadvantage) 0 discontinuing the Beta product line? 4. Assume that Cane expects to produce and sell 91,000 Betas during the current year, One of Cane's sales representatives has found a new customer who is willing to buy 6,000 additional Betas for a price of $40 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 13. Assume that Cane's customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the raw material available for production is limited to 161,000 pounds. How many units of each product should Cane produce to maximize its profits? 8. Assume that Cane normally produces and sells 61,000 Betas and 81,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 16,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 2. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal blaces.) 7. Assume that Cane normally produces and sells 41,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 11. How many pounds of raw material are needed to make one unit of each of the two products? 15. Assume that Cane's customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the company's raw material available for production is limited to 161,000 pounds. If Cane uses its 161,000 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.) Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this lovel of activity are given below: 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