Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

thank u! ill give thumbs up! Required 2015 [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and

thank u! ill give thumbs up!
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 2015 [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. Direct baterials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5 30 26 13 22 18 21 $ 110 Beta $ 15 22 11 24 14 16 $ 102 Book P 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. References 2. What is the company's total amount of common fixed expenses? Total common fixed expenses [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. Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 26 13 22 18 21 $ 130 $ 15 22 11 24 14 16 $ 102 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 86.000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? [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. Part 4 10 Direet materiale Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 26 13 22 10 21 5130 Beta 5.15 22 11 24 14 16 102 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. Rules 4. Assume that Cane expects to produce and sell 96,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 2.000 additional Botas for a price of $45 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Part 5 of 15 Cane Company manufactures two products called Alpha and Bets that sell for $150 and $110, respectively. Each produd 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: D fonts Alpha $30 26 13 22 10 21 $ 130 Beta 5.15 22 11 24 Direct materiale Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit ebook 16 $ 102 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. Hoforces 5. Assume that Cane expects to produce and sell 101000 Alphas during the current your One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit, however pursuing this opportunity will decrease Alpho sales to regular customers by 9.000 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. ReqSA Hea What is the financial advantage (disadvantage of accepting the new customer's order? Re SB > 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 Beta Direct materiale $ 15 Direct labor 26 22 Variable manufacturing overhead 13 Traceable fixed manufacturing overhead 22 24 Variable selling expenses 18 Common fixed expenses 21 Total cost per unit S 130 $102 11 14 LO 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. nes 6. Assume that Cane normally produces and sells 96,000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line? tots 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. Direct materiale Direet labor Variable manufacturing overbead traceable tied manufacturing overhead Variable selling expenses Common tixed expenses Total cost pe unit Alpha #15 26 22 13 22 24 10 14 21 16 $ 130 102 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. rences 7. Assume that Cane normally produces and sells 46.000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line? Punto The following information Cane Company manufactures two products called Alpha and Bets 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. 10 Alpha 330 Durat Direct labor Varishte manufacturing overhead Tessble fixed manufacturing overhead Variable selling expenses Common te punes Total cost per unit 1) 22 18 21 1 130 sota 315 22 11 20 14 10 103 Pit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common foed expenses pre unavoidable and have been allocated to products based on sales dollars. 8. Assume that Cane normally produces and sells 66.000 Betas and 86.000 Alphas per your ir Cone discontinues the Beta product tine, its sales representatives could increase sales of Alpha by 12.000 units. What is the financial advantage disadvantage of discontinuing the Beta product line? Part of 15 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 Beta 10 points 22 11 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling exp Common fixed expenses Total cost per unit Alpha 330 26 13 23 10 21 5130 14 16 $ 102 The company consider 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 can expects to produce and sell 86.000 Alphos during the current year. A supplier has offered to manufacture and deliver 86,000 Aphas to Cane for a price of $104 per unit. What is the financial advantage (disadvantage) of buying 86.000 units from the supplier instead of making those units? 10 of 15 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. teta 15 Direct materials Direct labor Variable manufacturing overhead Tractable fixed manufacturing overhead Variable selling expenses Como ed expenses Total cost per unit Alpha 30 26 13 22 18 21 $ 130 11 24 14 10 3102 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 Care expects to produce and sell 56,000 Alphas during the current year. A supplier has offered to manufacture and deliver 56,000 Alphas to Cane for a price of 5104 per unit. What is the financial advantage (disadvantage) of buying 56,000 units from the supplier instead of making those units? 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 100,000 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 $ 30 26 13 22 10 21 $ 130 Beta $ 15 22 11 24 14 16 5 102 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 115 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 Beta Direct materials $.30 $ 15 Direct labor 26 22 Variable manufacturing overhead 13 11 Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 16 Total cost per unit $ 230 $ 102 22 18 21 24 14 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. aces 12 What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Alpha Contribution margin per pound 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: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 26 13 22 18 21 $ 130 Beta $ 15 22 11 24 14 16 $ 102 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 soles dollars. 13. Assume that Cane's customers would buy a maximum of 86,000 units of Alpha and 66,000 units of Beta. Also assume that the raw material available for production is limited to 210,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced 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 Bata $15 Direct materiale Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 26 13 22 18 21 11 -24 16 16 $ 102 130 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 ce 14. Assume that Cane's customers would buy a maximum of 86,000 units of Alpha and 66,000 units of Beta. Also assume that the raw material available for production is limited to 210,000 pounds. What is the total contribution margin Cane Company will earn? Total contution margin 15 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 Bate Direct materials $ 30 $15 Direct labor 26 22 Variable manufacturing overhead 13 11 Traceable fixed manufacturing overhead 22 24 Variable selling expenses 10 Common fixed expenses 21 16 Total cost per unit $ 130 $ 102 TO 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. ces 15. Assume that Cane's customers would buy a maximum of 86.000 units of Alpha and 66,000 units of Beta. Also assume that the company's raw material available for production is limited to 210,000 pounds. If Cane uses its 210,000 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) Maumum price to tre paid per pound

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

Step: 3

blur-text-image

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

Principles Of Cost Accounting

Authors: Robert E. Schmiedicke, Edward J. Vanderbeck

11th Edition

0538873426, 978-0538873420

More Books

Students also viewed these Accounting questions