In 2017, Commodity Inc

question 152

Multiple Choice

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?

• A) $280,000
• B) $140,000
• C) $105,000
• D) $210,000

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Definitions:

Shaping

Shaping is a psychological conditioning technique in which successive approximations toward a desired behavior are reinforced, gradually leading to the adoption of the behavior.

Reinforcing

The process of encouraging or establishing a pattern of behavior by offering rewards or incentives.

Behavioral Goals

Specific objectives set to change or maintain an individual's behavior, often involving measurable and achievable steps.

Positive Reinforcement

A technique in behavior modification that involves giving a reward to increase the likelihood of a desired response.