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Question: Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: AlphaBetaDirect materials$ 25$ 10Direct labor2221Variable manufacturing overhead177Traceable fixed manufacturing overhead1820Variable selling expenses1410Common fixed expenses1712Total cost per unit$ 113$ 80 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.13. Assume that Cane's customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the raw material available for production is limited to 162,000 pounds. How many units of each product should Cane produce to maximize its profits?
(a) Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000
Why do overhead costs often shift from high-volume products to low-volum products when a company switches from a conventional costing method
The key chains sell for RM4.60 each. Assume that CK Sdn Bhd is targeting a profit of RM30,000. Determine the units of key chains required to be sold
Cost-Volume Profit - Analysis Hailstorm Company sells a single product for $22 per unit. What is Hailstorm Company break-even point in units
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Transfer prices do not matter because they don't impact operating income. After all, what is revenue to one division is an expense to another division.
Determine the budget variance (i.e., total revenue variance). Determine the price variance. Determine the volume variance.What was the total budgeted revenue?
Assume the sales mix remains the same at all levels of sales. Calculate the weighted average contribution margin per unit
Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is? Depreciation method Straight-line
Calculate the material handling rate that would have been used by Eloise Smith's predecessor at East Coast Marine and calculate the revised material handling costs to be allocated on a per purchase order basis.
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Matrix human resources company, List the relevant costs of internally providing the service and externally purchasing them from the other organization.
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