Mama Fran's Bakery makes a variety of homestyle cookies for upscale restaurants in the Atlanta metropolitan area. The company's bestselling 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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