Cane company manufactures two products called alpha and

Reference no: EM13572696

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:

	Alpha			Beta
Direct materials		$	40		$	24
Direct labor			29			25
Variable manufacturing overhead			15			14
Traceable fixed manufacturing overhead			25			27
Variable selling expenses			21			17
Common fixed expenses			24			19

Total cost per unit		$	154		$	126

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:
What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?

Reference no: EM13572696

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