Chapter 7, Problem 5BE

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In 2022, Rolling Mills, a producer of organic oat flour, had the capacity to produce 12,000,000 pounds of product at a conversion cost per pound of $0.18. The conversion cost per pound was $0.14 in 2021 (the previous year). The direct material cost per pound for both years was $0.09 per pound. In 2022, Rolling Mills produced 10,500,000 pounds, while actual production for the previous year was 9,200,000 pounds. What was the cost of unused capacity in 2022?

What is the smartphone Division's capital turnover?

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