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You are going into business making and selling gourmet meat pies. Your recipe for a meat pie consists of the following: You estimate that 10%
You are going into business making and selling gourmet meat pies. Your recipe for a meat pie consists of the following:
You estimate that 10% of the meat and vegetables will be normal spoilage. What is the standard cost for direct materials per completed pie?
a. $8.64 b.$13.92 c.$14.58 $15.09
B is incorrect, I need the correct answer with an explanation. The previous EA gave the incorrect answer.
\begin{tabular}{|lll|} \hline \multicolumn{1}{|c}{ Item } & \multicolumn{1}{c}{ Standard Quantity } & \multicolumn{1}{c|}{ Standard Cost } \\ \hline Pie crust & 2 & $2.49 per crust \\ \hline Ground meat & 1 kilogram (kg) & $5.95 per kg \\ \hline Ground vegetables & 0.25kg & $2.60 per kg \\ \hline Broth & 250 millilitres (ml) & $1.95 per 250ml \\ \hline Spices and herbs & 15ml & $0.07 per ml \\ \hline \end{tabular}Step by Step Solution
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