-0.7339051703428137 1523844979335 The following informetion applies to the quest

Question

-0.7339051703428137 1523844979335 The following informetion applies to the questions displayed below Cane Compeny manufactures two products called Alphe and Beta that sell for $120 and $80, respectively Each product uses only one type of row meth annually produce 100,000 unlts of each pro given below s $6 per pound. The company has the capacity to costs for each product at this level of activity are Direct materials Direct labor Varlable manufacturing overhead Traceable fxed manufacturing overhead Varlable selling expenses Common fixed expenses $ 30 $12 20 15 18 10 $100 $68 16 12 15 Total cost per unit he company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common expenses are deemed unavoidable and have been allocated to products based on sales dollars 10.00 points Required 1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product lIine? Alpha Traceable fxed manufacturing overhead O Type here to search

Explanation / Answer

Ans.1 Alpha Beta Traceable fixed manufacturing overhead 1600000 1800000 *Calculation: Alpha 16 * 100000 Beta 18 * 100000 Ans.2 Total common fixed expenses 2500000 *Calculation: Alpha 15 * 100000 1500000 Beta 10 * 100000 1000000 Total 2500000 Ans.3 Net operating income increased by 110000 *Calculation: Particulars Amount Incremental sales (10000*80) 800000 Less: Incremental variable cost: Direct material (10000*30) -300000 Direct labor (10000*20) -200000 variable manufacturing overhead (10000*7) -70000 Variable selling expenses (10000*12) -120000 Incremental net operating income 110000 Ans.4 Net operating income decreased by 150000 *Calculation: Particulars Amount Incremental sales (5000*39) 195000 Less: Incremental variable cost: Direct material (5000*30) -150000 Direct labor (5000*20) -100000 variable manufacturing overhead (5000*7) -35000 Variable selling expenses (5000*12) -60000 Incremental net operating income -150000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.