Question

Waterway'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. Waterway's recipe requires 80 ounces of a commercial cookie mix, 7 ounces of milk chocolate, and 2 ounces of almonds per batch of cookies. The standard direct materials costs are $1.20 per pound of cookie mix, $12.00 per pound of milk chocolate, and $10.00 per pound of almonds. Each pound of cookies requires 1 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 $22.00 per DLH, respectively. Variable overhead is applied at a rate of $48.00 per DLH; fixed overhead is applied at a rate of $78.00 per DLH.

Calculate the standard cost for a pound of Waterway'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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Waterway's Bakery
1 pound =16 ounces
Direct material cost per pound	Commercial cookie	Milk chocolate	Almonds	Total	Note
Quantity required per pound (Ounces)	80.00	7.00	2.00		A
Quantity required per pound (Pound)	5.00	0.44	0.13		B=A/16
Cost per pound	1.20	12.00	10.00		C
Direct material cost per pound	6.00	5.25	1.25	12.50	D=B*C
Direct labor cost per pound	Mixing	Baking	Total
Time required per pound (minutes)	1.00	3.00			E
Time required per pound (Hours)	0.02	0.05	0.07		F=E/60
Cost per hour	12.00	22.00			G
Direct labor cost per pound	0.20	1.10	1.30		H=F*G
Overhead cost per pound	Amount $
Variable overhead per hour	48.00				I
Fixed overhead per hour	78.00				J
Total overhead per hour	126.00				K=I+J
Time required per pound (Hours)	0.07				See F
Overhead cost per pound	8.40				L=K*F
Standard cost for a pound	Amount $
Direct material cost per pound	12.50				See D
Direct labor cost per pound	1.30				See H
Overhead cost per pound	8.40				See L
Standard cost for a pound	22.20