Standard absorption cost per unit.
Kelly Co. Processes corn into corn starch and corn syrup. The Company's productivity and cost standards follow:
From every bushels of corn processed,12 pounds of starch and 3 pounds of syrup should be produced.
Standard direct labor and variable overhead totals $.42 per bushels of corn processed
Standard fixed overhead ( the predetermined fixed overhead application rate) is $.35 per bushels processed.
A) Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 15,000 bushels of corn if the average cost per bushel is $2.83
B) Evaluate the usefulness of this standard cost for management planning and control purposes.
This question was answered on: Sep 16, 2020
Need a similar solution fast, written anew from scratch? Place your own custom order
We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.