PRJ Candy Company makes and sells two kinds of candy bars: chocolate almond and coconut. During the past several years, the company has kept accurate records of costs and resource requirements and has determined that the following are needed to make the candy bars:

One Box of 24 Chocolate Almond Bars Cost

Chocolate (11⁄2 pounds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3.00/pound

Almonds (1 pound) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6.00/pound

Sugar (2 pounds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$0.75/pound

Direct labor (20 minutes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.00/hour

Manufacturing overhead (20 minutes) . . . . . . . . . . . . . . . . . . . . . . . . . . $6.00/direct labor hour

One Box of 24 Coconut Bars Cost

Chocolate (1 pound) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3.00/pound

Coconut (11⁄4 pounds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4.00/pound

Sugar (13⁄4 pounds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.75/pound

Direct labor (40 minutes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.00/hour

Manufacturing overhead (30 minutes) . . . . . . . . . . . . . . . . . . . . . . . . . $6.00/direct labor hour

Required:

1. Establish the budgeted product cost sheet for each type of candy bar.

2. If PRJ management wants to mark up each box of candy 40% to cover other costs and earn a profit, how much should be charged for a box of each type of candy bar?