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Please explain step by step which answer is correct. Thank you! In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce

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In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 14,000,000 pounds of product at a conversion cost per pound of $0.60. The conversion cost per pound was $0.55 in 2016 (the previous year). The direct material cost per pound for both years was $0.06 per pound and in 2017, Commodity Inc. produced 13,600,000 pounds while actual production for the previous year was 13, 200,000 pounds. What was the cost of unused capacity in 2017? O A. $220,000 OB. $440,000 OC. $240,000 OD. $480,000

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