Question

Sunland'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. Sunland'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, $7 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 8 minutes of direct labor in the baking department. The standard labor rates in those departments are $15.10 per direct labor hour (DLH) and $24 per DLH, respectively. Variable overhead is applied at a rate of $35.70 per DLH; fixed overhead is applied at a rate of $60 per DLH. Calculate the standard cost for a pound of Sunland'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 Enter the standard cost per pound in dollars rounded to 2 decimal places

Answer 1

Calculation of standard cost
Direct Material:
Commercial Cookie Mix 10*0.8/16	0.50
Milk Chocolate 5*7/16	2.19
Almonds 1*12/16	0.75
Direct Labor:
Mixing Department 1*15.10/60	0.25
Baking Department 8*24/60	3.20
Variable Overhead 9*35.70/60	5.36
Fixed Overhead 9*60/60	9.00
Standard Cost per Pound	21.24