Offer $25.00 for assistance 11_55_hmwk.docx 11-55 .docx -...

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Offer $25.00 for assistance 11_55_hmwk.docx 11-55 Aunt 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 Cost Direct materials Cookie mix 10oz $ .02 per oz $ .20
Milk chocolate 5oz .15 per oz .75 Almonds 1oz .50 per oz .50 $ 1.45 Direct Labor Mixing 1 min 14.40 per hr $ .24 Baking 2 min 18.00 per hr .60 $ .84 Variable Overhead 3 min
32.40 per hr $ 1.62 Total Standard cost per pound $ 3.91 Aunt Molly’s management accountant, Karen Blair, prepares monthly 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 April Static budget Actual Variance
Units (in pounds) 400,000 450,000 50,000 F Revenue $3,200,000 $3,555,000 $355,000F Direct materials $580,000 $865,000 $285,000 U Direct Labor 336,000 348,000 12,000 U

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