RachelRachel's

Bakery makes desserts for local restaurants. Each pan of gourmet

biscottibiscotti

requires

500500

g flour, 125 mL chopped pecans, 60 mL cocoa,

250250

g sugar, 125 mL chocolate chips,

33

eggs, and 90 mL oil. Each pan requires

1010

minutes of direct labour for mixing, cutting, and packaging. Each pan must bake for

3030

minutes. Restaurants purchase the gourmet

biscottibiscotti

by the pan, not by the individual serving. Each pan is currently sold for

$ 13$13.

Standard costs are

$ 1.92$1.92

per bag of flour

(44

kg in a bag),

$ 3.00$3.00

per bag of pecans

(750750

mL per bag),

$ 3.20$3.20

per tin of cocoa

(500500

mL per tin),

$ 1.68$1.68

per bag of sugar

(55

kg in a bag),

$ 4.80$4.80

per bag of chocolate chips

(1 comma 0001,000

mL per bag),

$ 1.08$1.08

per dozen eggs,

$ 1.44$1.44

per bottle of oil

(1.51.5

L per bottle), and

$ 0.60$0.60

for packaging materials. The standard wage rate is

$ 9$9

per hour.

RachelRachel

allocates bakery overhead at

$ 5.10$5.10

per oven hour.

Requirements

1. What is the standard cost per pan of gourmet

biscottibiscotti?

2. What is the standard gross profit per pan of gourmet

biscottibiscotti?

3. How often should

RachelRachel

reassess her standard quantities and standard prices for inputs?