Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 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 30 18 26 23 26 $ 163 Total common fixed expenses 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? Beta $15 30 16 29 19 21 $ 130
Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 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 30 18 26 23 26 $ 163 Total common fixed expenses 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? Beta $15 30 16 29 19 21 $ 130
Chapter5: Process Costing
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Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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![Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product
uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000
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 Beta
$ 40
$15
30
18
26
23
26
$ 163
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
30
16
29
19
21
$ 130](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13ffb487-410c-4808-947c-8212d0ee5563%2Fa07e047d-cc64-4eff-8007-9baa03496513%2Fy8v9qhb_processed.png&w=3840&q=75)
Transcribed Image Text:Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product
uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000
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 Beta
$ 40
$15
30
18
26
23
26
$ 163
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
30
16
29
19
21
$ 130
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