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Required Information. [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and
Required Information. [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta 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 average cost per unit for each product at this level of activity are given below. Alpha Betal Direct materials $30 15 Direct labor 26 22 Variable manufacturing overhead 13 11 Traceable fixed manufacturing overhead Variable selling expenses 22 24 18 14 Common fixed expenses 21 16 $130 $ 102 Total cost per unit 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? Traceable fixed manufacturing overhead Alpha Beta
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