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11_55_hmwk.docx11-55Aunt Molly’s Old Fashioned Cookies bakes cookies for retail stores. The company’s best-selling cookie is chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly’s normal monthly production of 400,000 pounds, is as follows:Cost Item Quantity Standard unit cost Total CostDirect materialsCookie mix 10oz $ .02 per oz $ .20
Milk chocolate 5oz .15 per oz .75Almonds 1oz .50 per oz .50$ 1.45Direct LaborMixing 1 min 14.40 per hr $ .24Baking 2 min 18.00 per hr .60$ .84Variable Overhead 3 min
32.40 per hr $ 1.62Total Standard cost per pound $ 3.91Aunt Molly’s management accountant, Karen Blair, preparesmonthly budget reports based on these standard costs. April’s contribution report, which compares budgeted and actual performance, is shown in the following schedule.Contribution Report for AprilStatic budget Actual Variance
Units (in pounds) 400,000 450,000 50,000 FRevenue $3,200,000 $3,555,000 $355,000FDirect materials $580,000 $865,000 $285,000 UDirect Labor 336,000 348,000 12,000 U

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