DMA, Inc., processes corn into corn starch and corn syrup. The company\'s produc

Question

DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow:

From every bushel of corn processed, 13 pounds of starch and 3 pounds of syrup should be produced.

Standard direct labor and variable overhead total $0.43 per bushel of corn processed.

Standard fixed overhead (the predetermined fixed overhead application rate) is $0.35 per bushel processed.

Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 14,000 bushels of corn if the average cost per bushel is $1.41. (Do not round your intermediate calculations. Round final answer to 3 decimal places.)

Standard absorption cost per pound  = ?

DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow:

Explanation / Answer

Standard absorption cost per pound = (1.41+0.43+0.35)/16 = $ 0.137

Standard absorption cost per pound = (1.41+0.43+0.35)/16 = $ 0.137

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.