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ty The XYZ Bakery uses a standard cost system for its production of fruitcakes. Fruitcake is produced by mixing up two major ingredients, Flour and

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The XYZ Bakery uses a standard cost system for its production of fruitcakes. Fruitcake is produced by mixing up two major ingredients, Flour and Sugar, with water, flavorings and fruits; and by adding a third ingredient which are eggs. All ingredients are inventoried per cup (for ease of accounting). Fruitcakes are sold as a loaf, and to produce one loaf, 3 cups of cake mixture is needed. Materials standards and costs for the production of 500 cups of output are: To convert 550 cups of ingredients into 500 cups of finished batter (the cake mixture before it is baked) requires 1,000 direct labor hours at P25 per direct labor hour. Factory overhead is applied on a direct labor hour basis. Actual data for the month of November follows: The bakery has been able to produce 1,500 loaves of fruitcake, with cost as follows

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