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

question 40

Essay

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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Definitions:

Dividend Payment

A distribution of a portion of a company's earnings to shareholders, typically in the form of cash or additional stocks.

Residual Dividend Policy

A strategy where a company pays dividends to shareholders from the residual net income after meeting its capital expenditure requirements.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.