The Foundational 15(Algo)[LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question ...

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Accounting

The Foundational 15(Algo)[LO13-2, LO13-3, LO13-4, LO13-5, LO13-6]
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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 average cost per unit for each product at this level of activity are given below:
Alpha Beta
Direct materials $ 40 $ 24
Direct labor 2925
Variable manufacturing overhead 1514
Traceable fixed manufacturing overhead 2527
Variable selling expenses 2117
Common fixed expenses 2419
Total cost per unit $ 154 $ 126
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.
Foundational 13-1(Algo)
Required:
1. What is the total amount of traceable fixed manufacturing overhead for each of the two products?

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