Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 12 - Differential Analysis: The Key to Decision Making - The Foundational 15 - Required - Page 560: 1

Answer

Alpha: 1,600,000; Beta: 1,800,000

Work Step by Step

Formula for the total amount of traceable fixed manufacturing overhead = Traceable fixed manufacturing overhead * The capacity of each product in units Total amount of traceable fixed manufacturing overhead for the Alpha product line = 100,000 * 16 = 1,600,000 Beta product line = 100,000 * 18 = 1,800,000
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