Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 97806436
ID: 2583098 • Letter: C
Question
Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 978064366 vea expenses are oeemeo unavoioabie ana nave Deen aliocatea to proaucts Dasea on saies dolars. Required information 1.00 points Required: 1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? Alpha Beta Required Informati orn Traceable fixed manufacturing overhead [The following information appWes to the questions displayed below Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below: References eBook & Resources Learning Objective: 12-03 Prepare a make or buy analysis Worksheet Alpha $ 30 20 Beta $ 12 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Difficulty: 2 Mediunm Learning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted. 16 12 15 18 Learning Objective: 12-02 Prepare an analysis showing whether a product line or other business segment should be added or dropped. Learning Objective: 12-05 Determine the most profitable use of a constrained 10 Total cost per unit $100 $ 68Explanation / Answer
Answer: Traceable fixed manufacturing overhead for Alpha = 100000*$16= $1600000
Beta = 100000*$18= $1800000
Traceable fixed manufacturing overhead= Total capacity* per unit cost