Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively. Each product uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$ units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $30$ $ $12$

Direct labor $2015$

Variable manufacturing overhead $75$

Traceable fixed manufacturing overhead $1618$

Variable selling expenses $128$

Common fixed expenses $1510$

Total cost per unit $ $100$ $ $68$

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.

Required:

$1.$ What is the total amount of traceable fixed manufacturing overhead for each of the two products?

Answer rating: 100% (QA)

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