GreenFields Agricultural Processing, Inc. processes wheat into wheat flour and wheat bran. The company's productivity and cost standards are as follows: 1. From every bushel of wheat processed: o 12 pounds of flour should be produced 。 4 pounds of bran should be produced 2. Standard direct labor and variable overhead total $0.65 per bushel of wheat processed. 3. Standard fixed overhead (predetermined fixed overhead application rate) is $0.45 per bushel processed. Required: Calculate the standard absorption cost per pound for the flour and bran produced from the processing of 15,000 bushels of wheat if the average cost per bushel is $2.10.

GreenFields Agricultural Processing, Inc. processes wheat into wheat flour and wheat bran. The company's productivity and cost standards are as follows: 1. From every bushel of wheat processed: o 12 pounds of flour should be produced 。 4 pounds of bran should be produced 2. Standard direct labor and variable overhead total $0.65 per bushel of wheat processed. 3. Standard fixed overhead (predetermined fixed overhead application rate) is $0.45 per bushel processed. Required: Calculate the standard absorption cost per pound for the flour and bran produced from the processing of 15,000 bushels of wheat if the average cost per bushel is $2.10.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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