Mountainburg Industries has developed two new products but has only enough plant capacity to introduce one product during the current year. The following data will assist management in deciding which product should be selected.                                       Product L    Product W Direct materials                      $   44      $    36 Machining labor ($12/hour)                 18           15 Assembly labor ($10Thour)                  30           10 Variable overhead ($8,hour)                36           18 Fixed overhead (4/hour)                    18 Total Manufacturing Cost                   146          88 Estimated selling price per unit      $  170     $    100 Actual research and development costs $240,000     $175,000 Estima.d advertising costs            $500,000     $300,000

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Requlred Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $42 42 $24 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 24 26. 34 27 29. $173 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. 4. Assume that Cane expects to produce and sell 109,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to…

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