Check my work Required information [The following information applies to the que

Question

Check my work Required information [The following information applies to the questions displayed below.] 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 pha Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $ 30 $12 15 18 10 $68 20 16 12 15 $100 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 2. What is the company's total amount of common fixed expenses? Total common fixed expenses

Explanation / Answer

Total common fixed expenses = Alpha + Beta

= (15*100,000) + (10*100,000)

= 1,500,000 + 1,000,000

= 2,500,000

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