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
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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