Rocco's Bakery makes desserts for local restaurants. Each pan of gourmet brownies requires 2 cups fl our, ½ cup chopped pecans, ¼ cup cocoa, 1 cup sugar, ½ cup chocolate chips, 3 eggs, and 1∕3 cup oil. Each pan requires 20 minutes of direct labor for mixing, cutting, and packaging. Each pan must bake for 30 minutes. Restaurants purchase the gourmet brownies by the pan, not by the individual serving. Each pan is currently sold for $10. Standard costs are $2.08 per bag of fl our (16 cups in a bag), $4.00 per bag of pecans (3 cups per bag), $2.40 per tin of cocoa (2 cups per tin), $2.08 per 5-pound bag of sugar (16 cups in a bag), $1.80 per bag of chocolate chips (2 cups per bag), $1.56 per dozen eggs, $2.16 per bottle of oil (6 cups per bottle), and $0.40 for packaging materials. The standard wage rate is $12 per hour. Rocco allocates bakery overhead at $5.00 per oven hour.
Requirements
1. What is the standard cost per pan of gourmet brownies?
2. What is the standard gross profit per pan of gourmet brownies?
3. How often should Rocco reassess standard quantities and standard prices for inputs?