18. XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800 units, respectively. XYZ Company currently pays a standard rate of $3 per foot for raw material A and $5 per sheet for raw material B. Each unit produced requires 4 feet of raw material A and 2 sheets of raw material B. Each unit produced also requires 30 minutes of cutting direct labor time at a standard rate of $16 per hour and 2 hours of assembly direct labor time at a standard rate of $20 per hour. Manufacturing overhead is applied at the standard rate of $10 per direct labor hour.

The total standard cost of Mays budgeted production of Item #123 is:

4. 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 6 pounds of syrup should be produced.
• Standard direct labor and variable overhead total $0.44 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 16,500 bushels of corn if the average cost per bushel is $1.59. (Do not round intermediate calculations. Round final answer to 3 decimal places.)

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

18 XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800 units, respectively. XYZ Company currently pays a standard rate of $3 per foot for raw material A and $5 per sheet for raw material B. Each unit produced requires 4 feet of raw material A and 2 sheets of raw material B. Each unit produced also requires 30 minutes of cutting direct labor time at a standard rate of $16 per hour and 2 hours of assembly direct labor time at a standard rate of $20 per hour. Manufacturing overhead is applied at the standard rate of $10 per direct labor hour. The total standard cost of May's budgeted production of Item #123 is: eBook Multiple Choice $198,400. o $208,800. o $304,000. o o $308,800. C Check my work 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 6 pounds of syrup should be produced. Standard direct labor and variable overhead total $0.44 per bushel of corn processed. Standard fixed overhead (the predetermined fixed overhead application rate) is $0.35 per bushel processed. points eBook Required: a. Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 16,500 bushels of corn if the average cost per bushel is $1.59. (Do not round intermediate calculations. Round final answer to 3 decimal places.) Hint Print Standard absorption cost per pound References 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