Question

x Your answer is incorrect. Bonita's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme. Bonita's recipe requires 30 ounces of a commercial cookie mix, 7 ounces of milk chocolate, and 4 ounces of almonds per batch of cookies. The standard direct materials costs are $1.20 per pound of cookie mix, $4.00 per pound of milk chocolate, and $11.00 per pound of almonds. Each pound of cookies requires 1 minutes of direct labor in the mixing department and 2 minutes of direct labor in the baking department. The standard labor rates in those departments are $15.00 per direct labor hour (DLH) and $18.00 per DLH, respectively. Variable overhead is applied at a rate of $42.00 per DLH; fixed overhead is applied at a rate of $70.00 per DLH. Calculate the standard cost for a pound of Bonita's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.) Standard cost per pound $ 8.15

Answer 1

Answer
Particulars	Amount($)
Direct Material
Cookie mix {(1.2/16)*30}	$       2.25
Milk chocolate {(4/16)*7}	$       1.75
Almonds {(11/16)*4}	$       2.75
Direct Labour
- Mixing Department{(15/60)*1}	$       0.25
- Baking Department{(18/60)*2}	$       0.30
Variable Overhead {(42/60)*3}	$       2.10
Fixed Overhead {(70/60)*3}	$       3.50
Total Cost per pound	$     12.90
Note: 1pound = 16 ounces
1hour = 60 minutes