Management account and control

6. Czar Nicholas Chocolatier, Ltd., makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the company's products, the Imperial Truffle. This product is made with the finest white chocolate and various fillings. The data below pertain only to the white chocolate used in the product. (The currency in the United Kingdom is the pound, which is denoted by .): Material requirements, kilograms of white chocolate per dozen truffles ......0.75 kilograms Allowance for waste, kilograms of white chocolate per dozen truffles........0.0185 kilograms Allowance for rejects, kilograms of white chocolate per dozen truffles .......0.0275 kilograms Purchase price, fi nest grade white chocolate ... ....... 8.75 per kilogram Purchase discount...... ...4% of purchase price Shipping cost from the supplier in Belgium. ..... 0.15 per kilogram Receiving and handling cost. 0.045 per kilogram Required: 1. Determine the standard price of a kilogram of white chocolate. (3 marks) 2. Determine the standard quantity of white chocolate for a dozen truffles. (1 mark) 3. Determine the standard cost of the white chocolate in a dozen truffles. (1 mark)