Maxime S.A. is a small company that processes wild mushrooms found in the forests of central France. For many years, Maxime's products have had strong sales in France. However, companies from other countries in Europe, such as italy and Spain, have begun marketing similar products in France, and price competition has become intense. Jean Gauthier, the company's controller, is planning to implement a standard costing system for Maxime and has gathered considerable information from the purchasing and production managers concerning production and material requirements for Maxime's products. Gauthier beileves that the use of standard costing will allow Maxime to improve cost control and thereby better compete with the new entrants into the French market Maxime's most popular product is dried chanterelle mushrooms, which are sold in small vacuum-packed jars, Each jar contains 15 grams of dried mushrooms. Fresh mushrooms are purchased for C60 per klogram in bulk from individuals who gather them from locat forests. (C stands for euro, the currency used in France.) Because of imperfections in the mushrooms and normal spoilage, one-quarfer of the fresh mushrooms are discarded. Fifteen minutes is the direct labour time required for inspecting and sorting per kilogram of fresh mushrooms. After sorting and inspecting, the acceptable mushrooms are flash dried, which requires 10 minutes of direct labour time per kilogram of acceptable, sorted, and inspected fresh mushrooms. The flash-drying removes most of the moisture content of the mushrooms and therefore reduces the welght of the acceptable mushrooms by 80%. As a consequence, a kilogram of acceptable fresh mushrooms ylelds only about 150 grams of dried mushrooms. After drying. the mushrooms are vacuum-packed in small jars and labels are applied. Direct labour is paid at a rate of 612 per hour. The cost of the glass jars, lids, and labels is E10 per 100 jars. The fabour time required to pack 100 jars is 10 minutes. Required: 1. Develop the standard cost for the direct labour and materials cost components of a single jar of dried chanterelle mushrooms, including the costs of the mushrooms, inspecting and sorting, drying, and packing. (Round intermediote calculations ond final answers to 2 decimal places.) labels are applied. Direct labour is paid at a rate of C12 per hour. The cost of the glass jars, lids, and labels is 50 per 100 jars. The labour time required to pack 100 jars is 10 minutes. Required: 1. Develop the standard cost for the direct labour and materlals cost components of a single jar of dried chanterelle mushrooms. including the costs of the mushrooms, inspecting and sorting, drying, and packing. (Round intermediato calculations and final answers to 2 decimal places.) 2. This part of the question is not part of your Connect assignment
