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In 2017, Commodity, Inc., processor of whole grain flour, had the capacity to produce 18,000,000 pounds of product at a conversion cost per pound of
In 2017, Commodity, Inc., processor of whole grain flour, had the capacity to produce 18,000,000 pounds of product at a conversion cost per pound of $0.40. Conversion cost per pound is $0.35 in 2016 (the previous year). The direct material cost per period for both years was $0.10 per pound and in 2017. Commodity Inc. produced 17,600,000 pounds. What was the cost of unused capacity in 2017?
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