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In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 11,000,000 pounds of product at a conversion cost per pound of
In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 11,000,000 pounds of product at a conversion cost per pound of $0.40. The conversion cost per pound was $0.35 in 2016 (the previous year). The direct material cost per pound for both years was $0.07 per pound and in 2017, Commodity Inc. produced 10,900,000 pounds while actual production for the previous year was 10,800,000 pounds. What was the cost of unused capacity in 2017? O A. $40,000 O B. $70,000 OC. $35,000 OD. $80,000
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