Required information[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each productuses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000units of each product. Its unit costs for each product at this level of activity are given below:Direct materialsDirect labourVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesCost per unitContribution margin per poundAlpha$40Alpha3724Beta322932$194The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare deemed unavoidable and have been allocated to products based on sales dollars.Beta$ 24302212. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)352527$163

Contribution margin is defined as what revenue is left with the firm after deduction of its Variable…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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.) 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 average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead. Variable selling expenses Common fixed expenses Total cost per unit Alpha $24 23 22 23 Total contribution margin 19 22 $ 133 Beta $ 12 26 12 25 15 17 $ 107 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 14. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume…
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! Required information [The following information applies 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 average cost per unit for each product at this level of activity is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 20 7 16 12 15 $ 100 Beta $ 12 15 5 18 8 10 $ 68 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 15. Assume Cane's customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume the company's raw material available for…
Problem to solve: please help. Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 30 25 Variable manufacturing overhead 20 15 Traceable fixed manufacturing overhead 26 28 Variable selling expenses 22 18 Common fixed expenses 25 20 Total cost per unit $ 153 $ 124 The company’s traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Please answer all of these fallowing questions: 5. Assume Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's sales representatives found a new customer…
! Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Alpha $ 40 37 24 32 29 32 $194 Beta $ 24 30 Total contribution margin 22 35 25 27 $163 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. 14. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the…
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! Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Rims Posts 0.20 0.70 Annual Production 21,000 units 79,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims $ 34,760 $ 136,670 Direct labor-hours $ 819,000 110 1,000 4,200 Posts 90 0 Total 200 55,300 1,000 59,500 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
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对 a Required Information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha. $ 42 Beta 2424 32 Direct materials Direct labor Variable manufacturing overhead, Traceable fixed manufacturing overhead, Variable selling expenses, Common fixed expenses 42 26. 34 24 27. 29. 34 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answer to 2 declmal Beta Contribution margin…

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