DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow: 1. From every bushel of corn processed, 13 pounds of starch and 5 pounds of syrup should be produced. 2. Standard direct labor and variable overhead total $0.57 per bushel of corn processed. 3. Standard fixed overhead (the predetermined fixed overhead application rate) is $0.38 per bushel processed. Required: Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 13,000 bushels of corn if the average cost per bushel is $1.93.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...
icon
Related questions
Question
100%

Answer general Accounting

DMA, Inc., processes corn into corn starch and corn syrup. The company's
productivity and cost standards follow:
1. From every bushel of corn processed, 13 pounds of starch and 5 pounds of
syrup should be produced.
2. Standard direct labor and variable overhead total $0.57 per bushel of corn
processed.
3. Standard fixed overhead (the predetermined fixed overhead application rate)
is $0.38 per bushel processed.
Required:
Calculate the standard absorption cost per pound for the starch and syrup
produced from the processing of 13,000 bushels of corn if the average cost per
bushel is $1.93.
Transcribed Image Text:DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow: 1. From every bushel of corn processed, 13 pounds of starch and 5 pounds of syrup should be produced. 2. Standard direct labor and variable overhead total $0.57 per bushel of corn processed. 3. Standard fixed overhead (the predetermined fixed overhead application rate) is $0.38 per bushel processed. Required: Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 13,000 bushels of corn if the average cost per bushel is $1.93.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College