11-55 (1) - 11-55 Aunt Mollys Old Fashioned Cookies bakes...

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11-55Aunt 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 $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly’s normal monthly production of 400,000 pounds, is as follows:Cost ItemQuantityStandardUnit costTotal CostDirect materials:Cookie mix……............Milk chocolate………..Almonds………………10 oz.5 oz.1 oz.$.02 per oz..15 per oz..50 per oz.$.20.75.50$1.45Direct labor:*Mixing…………………Baking…………………1 min.2 min.14.40 per hr.18.00 per hr.$.24.60$.84Variable overhead: **Total standard cost per lb.3 min.32.40 per hr.$1.62$3.91* Direct-labor rates include employee benefits** Applied on the basis of direct-labor hours.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 AprilStaticBudgetActualVariance

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