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In2017, CommodityInc., processor of whole grainflour, had the capacity to produce10,000,000 pounds of product at a conversion cost per pound of$0.20. The conversion cost per
In2017, CommodityInc., processor of whole grainflour, had the capacity to produce10,000,000 pounds of product at a conversion cost per pound of$0.20. The conversion cost per pound was$0.15 in 2016(the previousyear). The direct material cost per pound for both years was$0.07 per pound and in2017, Commodity Inc. produced9,300,000 pounds while actual production for the previous year was8,600,000 pounds. What was the cost of unused capacity in2017?
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