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 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,
$5 per pound of milk chocolate, and $18 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 $16.90 per direct
labor hour (DLH) and $24 per DLH, respectively. Variable overhead
is applied at a rate of $42.40 per DLH; fixed overhead is applied
at a rate of $60 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 |
Direct Material : | |
commercial cookie mix (10 ounces ×$0.80/ 16 ounces ) |
$0.5000 |
milk chocolate (5 ounces ×$5/16 ounces) | $1.5625 |
almonds (1ounces × $18 / 16 ounces) | $1.1250 |
Total Direct Material Per Pound(a) | $3.1875 |
Direct Labor: | |
Mixing department(1 min / 60 min × $16.90) | $0.2817 |
Baking department(2min / 60 min × $24.00) | $0.8000 |
Total labor cost per pound(b) | $1.0817 |
Manufacturing overhead : | |
Variable ($42.40/60min×3min) | $2.1200 |
Fixed ($60/60min×3min) | $3.0000 |
Manufacturing overhead per pound(c) | $5.1200 |
Standard cost per pound (a+b+c) | $9.3892 |
the standard cost for a pound of Crane's double chocolate almond supreme cookies => $ 9.39 Per pound.. (Round answer to 2 decimal places.
Get Answers For Free
Most questions answered within 1 hours.