DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow:

From every bushel of corn processed, 15 pounds of starch and 6 pounds of syrup should be produced.

Standard direct labor and variable overhead total $0.53 per bushel of corn processed.

Standard fixed overhead (the predetermined fixed overhead application rate) is $0.43 per bushel processed.

Required:

a. Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 13,000 bushels of corn if the average cost per bushel is $1.69. (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.

This cost per pound is

very/not very

useful for management planning and control purposes.