pter 11 Assignment i Requlred Informatlon The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $ 42, vて $ 24 Direct labor Variable manufacturing overhead Traceable fFixed manufacturing overhead Variable selling expenses Common fixed expenses 42. 34 31. 34 Total cost per unit $173 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. 15. Assume that Cane's customers would buy a maximum of99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to 344.000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 declmal places.) Maximum price to be paid per pound < Prev of 15 e to search 近。
pter 11 Assignment i Requlred Informatlon The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $ 42, vて $ 24 Direct labor Variable manufacturing overhead Traceable fFixed manufacturing overhead Variable selling expenses Common fixed expenses 42. 34 31. 34 Total cost per unit $173 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. 15. Assume that Cane's customers would buy a maximum of99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to 344.000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 declmal places.) Maximum price to be paid per pound < Prev of 15 e to search 近。
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![pter 11 Assignment
i
Requlred Informatlon
The following information applies to the questions displayed below.]
Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product
uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000
units of each product Its average cost per unit for each product at this level of activity are given below.
Alpha
$ 42,
vて $
24
Direct labor
Variable manufacturing overhead
Traceable fFixed manufacturing overhead
Variable selling expenses
Common fixed expenses
42.
34
31.
34
Total cost per unit
$173
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.
15. Assume that Cane's customers would buy a maximum of99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw
material available for production is limited to 344.000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much
should it be willing to pay per pound for additional raw materials? (Round your answer to 2 declmal places.)
Maximum price to be paid per pound
< Prev
of 15
e to search
近。](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febfcfc0b-9f32-4e16-9143-aece98b8dc65%2Fd2c09114-91a8-47c6-88a0-218bc945ac2b%2F4ccj2w.jpeg&w=3840&q=75)
Transcribed Image Text:pter 11 Assignment
i
Requlred Informatlon
The following information applies to the questions displayed below.]
Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product
uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000
units of each product Its average cost per unit for each product at this level of activity are given below.
Alpha
$ 42,
vて $
24
Direct labor
Variable manufacturing overhead
Traceable fFixed manufacturing overhead
Variable selling expenses
Common fixed expenses
42.
34
31.
34
Total cost per unit
$173
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.
15. Assume that Cane's customers would buy a maximum of99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw
material available for production is limited to 344.000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much
should it be willing to pay per pound for additional raw materials? (Round your answer to 2 declmal places.)
Maximum price to be paid per pound
< Prev
of 15
e to search
近。
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