Question
Victoria Chocolates, Ltd. makes premium handcrafted chocolate confections in Victoria, British Columbia. The owner of the company is setting up a standard costing system and
| Victoria Chocolates, Ltd. makes premium handcrafted chocolate confections in Victoria, British Columbia. The owner of the company is setting up a standard costing system and has collected the following data for one of the companys products, the Empire Truffle. This product is made with the finest white chocolate and various fillings. The following data pertain only to the white chocolate used in the product: |
| Material requirements, kilograms of white chocolate per dozen truffles | 0.80 | kilogram | |
| Allowance for waste, kilograms of white chocolate per dozen truffles | 0.04 | kilogram | |
| Allowance for rejects, kilograms of white chocolate per dozen truffles | 0.02 | kilogram | |
| Purchase price, finest-grade white chocolate | $ | 10.50 | per kilogram |
| Purchase discount | 5% | of purchase price | |
| Shipping cost from the supplier in Belgium | $ | 0.50 | per kilogram |
| Receiving and handling cost | $ | 0.10 | per kilogram |
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| Required: |
| 1. | Determine the standard price of one kilogram of white chocolate. (Do not round your intermediate calculations and round your answer to 3 decimal places.) |
| 2. | Determine the standard quantity of white chocolate for a dozen truffles. (Round your answer to 2 decimal places.) |
| 3. | Determine the standard cost of the white chocolate in a dozen truffles. (Do not round intermediate calculations and round final answer to 3 decimal places.) |
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