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XYZ, Inc., processes soy beans into Product A and Product B and the company's productivity and cost standards follow: From every bushel of beans
XYZ, Inc., processes soy beans into Product A and Product B and the company's productivity and cost standards follow: From every bushel of beans processed, 6 pounds of Product A and 4 pounds of Product B should be produced. Standard direct labor and variable overhead total $0.85 per bushel of beans processed. Standard fixed overhead (the predetermined fixed overhead application rate) is $0.70 per bushel processed. Calculate the standard absorption cost per pound for Product A and Product B produced from the processing of 24,000 bushels of beans if the average cost per bushel is $3.75.
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