Question

Crane'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. Crane's recipe requires 20 ounces of a commercial cookie mix, 5 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 $9.00 per pound of almonds. Each pound of cookies requires 2 minutes of direct labor in the mixing department and 3 minutes of direct labor in the baking department. The standard labor rates in those departments are $12.00 per direct labor hour (DLH) and $20.00 per DLH, respectively. Variable overhead is applied at a rate of $42.00 per DLH; fixed overhead is applied at a rate of $66.00 per DLH.

Calculate the standard cost for a pound of Crane's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)

Standard cost per pound

$enter the standard cost per pound in dollars rounded to 2 decimal places

Answer 1

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Answer Calculation of Standard Cost per pound Particulars Amount ($) 1.50 1.25 2.25 Direct Materials Commercial Cookie mix (20*1.2/16) Milk Chocolate (5*4/16) Almonds (4*9/16) Direct Labor Mixing Deptt (2*12/60) Baking Deptt (3*20/60) Variable Overheads (42* (2+3)/60) Fixed Overheads (66*(2+3)/60) Standard Cost per Pound 0.40 1.00 3.50 5.50 15.40