The costs of energy consumed in producing good units in the Baking Department were $14,875 and $14,615 for June and July,

The costs of energy consumed in producing good units in the Baking Department were $14,875 and $14,615 for June and July, respectively. The number of equivalent units produced in June and July was 42,500 pounds and 39,500 pounds, respectively. Evaluate the change in the cost of energy between the two months.


Answer:











Energy cost per pound, June: 
Energy cost per pound, July: 
$14,875 
42,500 
$14,615 
39,500 
The cost of energy has increased by 2 cents per pound between June and 
July, indicating inefficiency in the use of energy.