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.

Question

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The Answer of 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.

XYZ, Inc, Processes Soy Beans into Product a and Product B