The followinny mmation applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its unit costs 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 $40 29 15 25 21 24 Pounds of raw materials per unit 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. $154 $126 11. How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Contribution margin per pound Beta $24 25 14 27 17 19 Alpha 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.) Alpha Beta Beta
The followinny mmation applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its unit costs 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 $40 29 15 25 21 24 Pounds of raw materials per unit 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. $154 $126 11. How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Contribution margin per pound Beta $24 25 14 27 17 19 Alpha 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.) Alpha Beta Beta
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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