MDA Incorporated processes corn into corn starch and corn syrup. The company's productivity and cost standards follow:

• From every bushel of corn processed, 10 pounds of starch and 5 pounds of syrup should be produced.
• Standard direct labor and variable overhead total $0.58 per bushel of corn processed.
• Standard fixed overhead (the predetermined fixed overhead application rate) is $0.45 per bushel processed.

Required:

1. Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 12,000 bushels of corn if the average cost per bushel is $2.13.
2. Comment about the usefulness of this standard cost for management planning and control purposes.