Author Question: In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 10,000,000 ... (Read 38 times)

rl · **on:** Mar 6, 2021

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?
◦ $280,000
◦ $140,000
◦ $105,000
◦ $210,000

scottmt · **Reply #1 on:** Mar 6, 2021

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