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In 2017, Commodity Inc

question 152

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In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 10,000,000 pounds of product at a conversion cost per pound of $0.20. The conversion cost per pound was $0.15 in 2016 (the previous year) . The direct material cost per pound for both years was $0.07 per pound and in 2017, Commodity Inc. produced 9,300,000 pounds while actual production for the previous year was 8,600,000 pounds. What was the cost of unused capacity in 2017?

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Definitions:

Hypnotic Therapy

A therapeutic technique in which clinicians use hypnosis to help patients enter a state of deep relaxation, aiming to alter behaviors, perceptions, sensations, and emotions.

Adrenocorticotropic Hormone

A hormone produced by the pituitary gland that stimulates the production and release of cortisol from the adrenal gland.

Hypothalamus

A small region of the brain that plays a crucial role in many important functions, including releasing hormones and regulating body temperature.

Pituitary Gland

A small endocrine gland in the brain that produces hormones regulating growth, metabolism, and reproductive functions.

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