Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitThe company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars.11. How many pounds of raw material are needed to make one unit of each of the two products?Pounds of raw materials per unitAlphaBeta$ 40$1530301816262923192621$ 163 $ 130AlphaBeta

Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Answered: 11. How many pounds of raw material are…

11. How many pounds of raw material are needed to make one unit of each of the two products? Pounds of raw materials per unit Alpha Beta

Principles of Accounting Volume 2

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ISBN:9781947172609

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Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Question

Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product
uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000
units of each product. Its average cost per unit for each product at this level of activity are given below:
Direct materials
Direct labor
Variable manufacturing overhead
Traceable fixed manufacturing overhead
Variable selling expenses
Common fixed expenses
Total cost per unit
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.
11. How many pounds of raw material are needed to make one unit of each of the two products?
Pounds of raw materials per unit
Alpha
Beta
$ 40
$15
30
30
18
16
26
29
23
19
26
21
$ 163 $ 130
Alpha
Beta

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