Denger Required information[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each productuses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000units of each product. Its average cost per unit for each product at this level of activity is given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$403320282528$174Maximum price to be paid per poundBeta$ 242818312123$ 145The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses areunavoidable and have been allocated to products based on sales dollars.15. Assume Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume the company'sraw material available for production is limited to 227,000 pounds. If Cane uses its 227,000 pounds of raw materials, up to how muchshould it be willing to pay per pound for additional raw materials?Note: Round your answer to 2 decimal places.

When there is a restrained resource then instead of using the contribution margin per unit for…

Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its average cost per unit for each product at this level of activity is 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 $24 33 28 20 18 11 28 31 25 21 28 23 $174 $ 145 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 15. Assume Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume the company's raw material available for production is limited to 227,000 pounds. If Cane uses its 227,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? Note: Pound your rto ? decimal places

Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its average cost per unit for each product at this level of activity is 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 $24 33 28 20 18 11 28 31 25 21 28 23 $174 $ 145 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 15. Assume Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume the company's raw material available for production is limited to 227,000 pounds. If Cane uses its 227,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? Note: Pound your rto ? decimal places

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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