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Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its unit costs for each product at this level of activity are given below:AlphaBetaDirect materials$24$12Direct labor2326Variable manufacturing overhead2212Traceable fixed manufacturing overhead2325Variable selling expenses1915Common fixed expenses2217Total cost per unit$133$107The 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.

Respuesta :

Sand (including silica sand), clay, hard rock, limestone (including metallurgical limestone), gravel, and other building and road-building supplies are considered basic raw materials (BRM).

A raw material, which is also referred to as a feedstock, an unprocessed material, or a primary commodity, is a kind of fundamental resource that is used to make other materials, such as intermediate materials that will be used as feedstock for finished items in the future. The phrase "feedstock" implies that these resources are bottleneck resources needed to manufacture other goods. The term "raw material" refers to substances that have not undergone any processing or have undergone very little processing, such as raw latex, crude oil, cotton, coal, raw biomass, iron ore, air, logs, and water, or "any product of agriculture, forestry, fishing, or mineral in its natural form or which has undergone the transformation required to prepare it for international marketing in substantial volumes."

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