DMA, Inc. Apply Standard Conversion Costs Labor Overhead
Not what you're looking for?
DMA, Inc. processes corn into starch and corn syrup. The company's productivity and cost standards follow:
From every bushel of corn processed, 14 pounds of starch and 4 pounds of syrup should be produced.
Standard direct labor and variable overhead total $0.51 per bushel of corn processed.
Standard fixed overhead (the predetermined fixed overhead application rate) is $0.48 per bushel processed.
a. Calculate the standard absorption cost per poun for the starch and syrup produced from the processing of 16,000
bushels of corn if the average cost per bushel is $2.36.
Standard absorption cost ? per pound
b. Comment about the usefulness of this standard cost for management planning and control purposes.
This cost per pound is ? useful for management planning and control purposes.
Purchase this Solution
Solution Summary
See Excel attached for schedules to guide you and instructional notes. Click in cells to see computations.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Motivation
This tests some key elements of major motivation theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.