Question

Sally's Chocolate Company makes gourmet cupcakes which are sold by the dozen. Compute the standard cost for one dozen cupcakes, based on the following standards: Standard materials quantity: 4.25 cups of ingredients at $0.56 per cup Standard labor: 1.10 hours at $8.30 per hour Factory overhead: $3.80 per direct labor hour

Answer 1

The correct answer is $15.69.

Step-by-step explanation:

According to the scenario, computation of the given data as follow:-

We can calculate the cupcake sold by the dozen by using following formula:-

Cost for a dozen cupcake = Direct material + Direct labor + Factory OH

Where,

Direct material = 4.25 × $0.56 = $2.38

Direct labor = 1.10 × $8.30 = $9.13

Factory overhead = 1.10 × $3.80 = $4.18

By putting the value in the formula, we get

= $2.38 + $9.13 + $4.18

= $15.69