Cane Company manufactures two products called Alpha and Beta that sell for $155
ID: 2474441 • Letter: C
Question
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 24 $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $ 133 $ 107 .
What is the company’s total amount of common fixed expenses?
Explanation / Answer
Total Common Fixed Expenses = 22*110,000 + 17* 110,000 = $ 4,290,000