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

From every bushel of corn processed, $13$ pounds of starch and $6$ pounds of syrup should be produced.

Standard direct labor and variable overhead total $$0\mathrm{.}54$ per bushel of corn processed.

Standard fixed overhead $($the predetermined fixed overhead application rate$)$ is $$0\mathrm{.}42$ per bushel processed.

Required:

a$.$ Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of $16,000$ bushels of corn if the average cost per bushel is $$2\mathrm{.}51.$

b$.$ Comment about the usefulness of this standard cost for management planning and control purposes.

Complete this question by entering your answers in the tabs below.

Required $A$

Required $B$

Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of $16,000$ bushels of corn if the average cost per bushel is $$2\mathrm{.}51.$

Note: Do not round intermediate calculations. Round final answer to $3$ decimal places.

Standard absorption cost

per pound

Required $A$

Required 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.