Question

Mama Fran's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan...

Mama Fran'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. Mama Fran's recipe requires 10 ounces of a commercial cookie mix, 5 ounces of milk chocolate, and 1 ounce of almonds per pound of cookies. The standard direct materials costs are \$0.80 per pound of cookie mix, \$4 per pound of milk chocolate, and \$12 per pound of almonds. Each pound of cookies requires 1 minute 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 \$14.40 per direct labor hour (DLH) and \$18 per DLH, respectively. Variable overhead is applied at a rate of \$32.40 per DLH; fixed overhead is applied at a rate of \$60 per DLH .

Calculate the standard cost for a pound of Mama Fran's double chocolate almond supreme cookies.​

 Particulars Amount(\$) Direct Material - Cookie mix {(0.80/16)*10} 0.50 - Milk chocolate {(4/16)*5} 1.25 - Almonds {(12/16)*1} 0.75 Direct Labour - Mixing Department{(14.40/60)*1} 0.24 - Baking Department{(18/60)*2} 0.60 Variable Overhead {(32.40/60)*3} 1.62 Fixed Overhead {(60/60)*3} 3.00 Total Cost per pound 7.96

Note: 1pound = 16 ounces

1hour = 60 minutes

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