Question
Oriole's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond
Oriole's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme. Oriole's recipe requires 10 ounces of a commercial cookie mix, 5 ounces of milk chocolate, and 1 ounce of almonds per pound of cookies. The standard direct materials costs are $0.80 per pound of cookie mix, $5 per pound of milk chocolate, and $17 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 10 minutes of direct labor in the baking department. The standard labor rates in those departments are $16.20 per direct labor hour (DLH) and $20 per DLH, respectively. Variable overhead is applied at a rate of $38.90 per DLH; fixed overhead is applied at a rate of $60 per DLH. Calculate the standard cost for a pound of Oriole's double chocolate almond supreme cookies.
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