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Home Q & A Board Other Fields Homework Help Business Accounting
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yolomanolo yolomanolo
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6 years ago
In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 10,000,000 pounds of product at a conversion cost per pound of $0.20.  The conversion cost per pound was $0.15 in 2016 (the previous year).  The direct material cost per pound for both years was $0.07 per pound and in 2017, Commodity Inc. produced 9,300,000 pounds while actual production for the previous year was 8,600,000 pounds.  What was the cost of unused capacity in 2017?
A) $280,000
B) $140,000
C) $105,000
D) $210,000
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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ediblefruitzediblefruitz
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6 years ago
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yolomanolo Author
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6 years ago
Thank you for being such a great website leader! Your answer's right.
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