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Unformatted text preview: 11-55Aunt Mollys Old Fashioned Cookies bakes cookies for retail stores. The companys best-selling cookie is chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Mollys normal monthly production of 400,000 pounds, is as follows:Cost ItemQuantityStandardUnit costTotal CostDirect materials:Cookie mix............Milk chocolate..Almonds10 oz.5 oz.1 oz.$.02 per oz..15 per oz..50 per oz.$.20.75.50$1.45Direct labor:*MixingBaking1 min.2 min.14.40 per hr.18.00 per hr.$.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 Mollys management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. Aprils contribution report, which compares budgeted and...
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This note was uploaded on 11/02/2011 for the course ECON 202 taught by Professor Steve during the Spring '11 term at Southern New Hampshire University.
- Spring '11