Required information [The following information applies to the questions displayed below.] Abel Company manufactures two products called Deluxe and Regular that sell for $67 and $42, respectively. Each product uses only one type of raw material that costs $3 per kilogram. The company has the capacity to annually produce 48,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Deluxe Regular $ 14 $ 4 9 7.50 3.00 4.50 7 11 4 7 4 6.00 $ 43 $ 38 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for the Deluxe product line and for the Regular product line? Traceable fixed manufacturing overhead Deluxe Regular
Required information [The following information applies to the questions displayed below.] Abel Company manufactures two products called Deluxe and Regular that sell for $67 and $42, respectively. Each product uses only one type of raw material that costs $3 per kilogram. The company has the capacity to annually produce 48,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Deluxe Regular $ 14 $ 4 9 7.50 3.00 4.50 7 11 4 7 4 6.00 $ 43 $ 38 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for the Deluxe product line and for the Regular product line? Traceable fixed manufacturing overhead Deluxe Regular
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Abel Company manufactures two products called Deluxe and Regular that sell for $67 and $42, respectively. Each product
uses only one type of raw material that costs $3 per kilogram. The company has the capacity to annually produce 48,000
units of each product. Its unit costs for each product at this level of activity are given below:
Direct materials
Direct labour
Variable manufacturing overhead
Traceable fixed manufacturing overhead
Variable selling expenses
Common fixed expenses
Cost per unit
Deluxe Regular
$ 14
$ 4
9
7.50
3.00
4.50
7
11
4
4
6.00
7
$ 43 $ 38
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses
are deemed unavoidable and have been allocated to products based on sales dollars.
Required:
1. What is the total amount of traceable fixed manufacturing overhead for the Deluxe product line and for the Regular product line?
Traceable fixed manufacturing overhead
Deluxe
Regular](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F152d606a-19d5-42cc-b16b-d3ab7c31caac%2Fec5a6929-e71e-45b5-892a-78e3557178c0%2Flclc3e5_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Abel Company manufactures two products called Deluxe and Regular that sell for $67 and $42, respectively. Each product
uses only one type of raw material that costs $3 per kilogram. The company has the capacity to annually produce 48,000
units of each product. Its unit costs for each product at this level of activity are given below:
Direct materials
Direct labour
Variable manufacturing overhead
Traceable fixed manufacturing overhead
Variable selling expenses
Common fixed expenses
Cost per unit
Deluxe Regular
$ 14
$ 4
9
7.50
3.00
4.50
7
11
4
4
6.00
7
$ 43 $ 38
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses
are deemed unavoidable and have been allocated to products based on sales dollars.
Required:
1. What is the total amount of traceable fixed manufacturing overhead for the Deluxe product line and for the Regular product line?
Traceable fixed manufacturing overhead
Deluxe
Regular
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