DMA Inc. processes corn into corn starch and corn syrup. The companys productivity and cost standards follow:
Question:
DMA Inc. processes corn into corn starch and corn syrup. The company’s productivity and cost standards follow:
From every bushel of corn processed, 12 pounds of starch and three pounds of syrup should be produced.
Standard direct labor and variable overhead total $0.42 per bushel of corn processed.
Standard fixed overhead (the predetermined fixed overhead application rate) is $0.35 per bushel processed.
Required:
a. Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 15,000 bushels of corn if the average cost per bushel is $2.83.
b. Comment about the usefulness of this standard cost for management planning and control purposes.
Step by Step Answer:
a Raw material cost 283 per bushel Direct labor and variable overhead 042 per ...View the full answer
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
Students also viewed these Business questions
-
The following information is available for Coniog Enterprises: 1. On 30 June 2020 the bank account in the general ledger refiected a credit balance of R 125 000. 2. The following related to sales for...
-
DMA, Inc., processes corn into corn starch and corn syrup. The companys productivity and cost standards follow: From every bushel of corn processed, 12 pounds of starch and 6 pounds of syrup should...
-
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard...
-
Read Exhibit 10.6 carefully and answer the following question: Can a free-market system be trusted to effectively address the global concern in biodiversity loss? Why or why not? Exhibit 10.6 EXHIBIT...
-
Interest on municipal bonds is usually exempt from federal income taxes. The interest rate on these bonds is therefore an after-tax rate of return (ROR). Other types of bonds (e.g., corporate bonds)...
-
What are some best practices for recruiting and hiring leadership candidates?
-
Amanda Forbes was hired as a nail technician by Showmann, Inc., in 2011. In 2017, Forbes attended a work-related holiday party where Showmann distributed raffle tickets to employees. One of the...
-
Tremont, Inc., sells tire rims. Its sales budget for the nine months ended September 30 follows: In the past, cost of goods sold has been 40% of total sales. The director of marketing and the...
-
Shelby Woods owns and operates an ice cream factory, the finest of its kind in all the world. Given that pints of ice cream are meant to be identical (for the same flavor), her company uses process...
-
1. How does Gandhi describe the religion that underlies all religions? 2. What is Gandhis argument for his belief in the goodness of God? Is his argument persuasive? 3. What does Gandhi mean when he...
-
Fox Trail Centers sales are all made on account. The firms collection experience has been that 30% of a months sales are collected in the month the sale is made, 50% are collected in the month...
-
A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which eight pad cases can be made costs $0.18. This amount is...
-
In a grand jury case, a bookstore was indicted in Oklahoma County on several counts of selling an obscene book. The grand jury was composed of 22 Baptists and 8 other people. The defendant feels that...
-
List advantages and disadvantages of the Uniform Construction Index (UCI) coding system.
-
If your credit cards APR is 24% compounded daily, what is the effective annual interest rate that you are paying?
-
Which business enterprises pay untaxed profits to owners/partners who then pay the taxes on their individual returns?
-
What is meant by contractor O & P? Give three components that are considered in the O & P.
-
Find the yearly depreciation of a $100,000 five-year class concrete mixer, first assuming that it is new when purchased, and then that it is purchased as used equipment.
-
As the accountant of Trina's Natural Food Store, (1) journalize the following transactions into the general journal (p. 2), (2) record and post as appropriate, and (3) prepare a schedule of accounts...
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
Tablerock Corp. is interested in reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $100,000 investment in a...
-
Capital budget expenditure analysis: Internet assignment. Annual reports provide significant information about an organization's capital budget and capital budgeting process. Campbell Soup Company...
-
Calculate NPV, present value ratio, and payback. TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is...
-
Question a) What is your definition of quality? (1 mark.) Explain how good quality management can have a positive impact on project outcomes. (8 marks.) b) c) There are four key questions in project...
-
Question a) The Agile Manifesto declares that there are four core values which distinguish Agile from traditional project methodologies. Discuss the benefits of any THREE (3) of them. b) The project...
-
Why is budgeting important? What are the sequential steps of budgeting? Who reviews budgets? How often? When should a financial manager use incremental budgeting? Zero-base budgeting? Complete the...
Study smarter with the SolutionInn App