Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155,...
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Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below:
Alpha
Beta
Direct materials
$
40
$
24
Direct labor
34
28
Variable manufacturing overhead
21
19
Traceable fixed manufacturing overhead
29
32
Variable selling expenses
26
22
Common fixed expenses
29
24
Total cost per unit
$
179
$
149
Required:
How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?
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