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I really need a help please. Thank you.
Required information The Foundational 15 (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6) The following information applies to the qu
Foundational 11-1 Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two product
Total cost per unit 15 $100 The company considers its traceable fixed manufacturing overhead expenses are unavoidable and hav
expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 11-3 3. Assume that Cane ex
Foundational 11-4 4. Assume that Cane expects to produce and sell 90,000 Betas during the current year. One of Canes sales r
Required information Complete this question by entering your answers in the tabs below. Req 5A Req 5B What is the financial a
Foundational 11-5 5. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Canes sales
Foundational 11-6 6. Assume that Cane normally produces and sells 90,000 Betas per year. What is the financial advantage (dis
Foundational 11-7 7. Assume that Cane normally produces and sells 40,000 Betas per year. What is the financial advantage (dis

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Answer #1
1.
Alpha Beta

Traceable fixed manufacturing overhead

1600000

[ 16 * 100000 ]

1800000

[ 18 * 100000 ]

2.
Total common fixed expenses = ( 15 * 100000 ) + ( 10 * 100000 ) 2500000
3.
Alpha
Direct materials 30
Direct labor 20
Variable manufacturing overhead 7
Variable selling expenses 12
Variable cost per unit 69
Alpha
Sales ( 10000 * 80 ) 800000
(-) Variable cost ( 10000 * 69 ) 690000
Financial advantage 110000
4.
Beta
Direct materials 12
Direct labor 15
Variable manufacturing overhead 5
Variable selling expenses 8
Variable cost per unit 40
Alpha
Sales ( 5000 * 39 ) 195000
(-) Variable cost ( 5000 * 40) 200000
Financial disadvantage (5000)
5-a.
Alpha ( New order )
Sales ( 10000 * 80 ) 800000
(-) Variable cost ( 10000 * 69 ) 690000
Contribution margin earned from new customer's order 110000
Alpha ( Regular customer )
Sales ( 5000 * 120 ) 600000
Variable cost ( 5000 * 69 ) 345000
Contribution margin lost on regular customers 255000
Contribution margin earned from new customer's order 110000
(-) Contribution margin lost on regular customers 255000
Financial disadvantage (145000)
5-b.
Based on your calculation in req. 5a should special order be accepted ?
Answer : No
6.
Beta
Variable cost ( 90000 * 40 ) 3600000
Traceable fixed manufacturing overhead 1800000
(-) Sales ( 90000 * 80 ) 7200000
Financial disadvantage (1800000)
7.
Beta
Variable cost ( 40000 * 40 ) 1600000
Traceable fixed manufacturing overhead 1800000
(-) Sales ( 40000 * 80 ) 3200000
Financial Advantage 200000
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