Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 97806436
ID: 2583159 • Letter: C
Question
Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 978064366 Required information 1.00 points 11. How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Alpha Beta Pounds of raw materials per unit Required Informati orn [The following information appWes to the questions displayed below References eBook & Resources 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: Learning Objective: 12-03 Prepare a make or buy analysis Worksheet Difficulty: 2 Mediunm Learning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted. Alpha $ 30 20 Beta $ 12 15 Learning Objective: 12-02 Prepare an analysis showing whether a product line or other business segment should be added or dropped. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Learning Objective: 12-05 Determine the most profitable use of a constrained 16 12 15 18 10 Total cost per unit $100 $ 68Explanation / Answer
Answer:-Raw material cost =$6 per pound
Direct Material cost per unit (Alpha) =$30 per unit
Pounds of raw material are needed to make one unit of Alpha:-
= Direct Material cost per unit (Alpha)/ Raw material cost per pound
=$30 per unit/$6 per pound =5 pounds
Pounds of raw material are needed to make one unit of Beta:-
= Direct Material cost per unit (Beta)/ Raw material cost per pound
=$12 per unit/$6 per pound = 2 pounds
Alpha Beta
Pounds of raw material per unit 5 2