Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its unit costs for each product at this level of activity are given below:
|
Alpha |
Beta |
| Direct materials |
|
$ |
40 |
|
|
$ |
24 |
|
| Direct labor |
|
|
29 |
|
|
|
25 |
|
| Variable manufacturing overhead |
|
|
15 |
|
|
|
14 |
|
| Traceable fixed manufacturing overhead |
|
|
25 |
|
|
|
27 |
|
| Variable selling expenses |
|
|
21 |
|
|
|
17 |
|
| Common fixed expenses |
|
|
24 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
| Total cost per unit |
|
$ |
154 |
|
|
$ |
126 |
|
|
|
|
|
|
|
|
|
|
|
|
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
|
| Required: |
|
What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?
|