Question

Bramble's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme. Bramble's recipe requires 10 ounces of a commercial cookie mix, 5 ounces of milk chocolate, and 1 ounce of almonds per pound of cookies. The standard direct materials costs are $0.80 per pound of cookie mix, $6 per pound of milk chocolate, and $18 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 7 minutes of direct labor in the baking department. The standard labor rates in those departments are $12.70 per direct labor hour (DLH) and $19 per DLH, respectively. Variable overhead is applied at a rate of $35.80 per DLH; fixed overhead is applied at a rate of $60 per DLH.

Calculate the standard cost for a pound of Bramble's Bakery double chocolate almond supreme cookies.

Answer 1

The total standard cost per pound of Bramble's Bakery double chocolate almond supreme cookies is calculated by summing the costs of materials, labor, and overhead, which results in $18.7183 per pound.

Step-by-step explanation:

To calculate the standard cost for a pound of Bramble's Bakery double chocolate almond supreme cookies, we need to consider the costs of materials, labor, and overhead. Below is the breakdown for each component per pound of cookies:

• Cookie mix (10/16 pounds at $0.80 per pound): $0.50
• Milk chocolate (5/16 pounds at $6 per pound): $1.875
• Almonds (1/16 pounds at $18 per pound): $1.125

Adding these amounts together gives us the total material cost of $3.50 per pound.

For labor, we need to calculate the cost for both mixing and baking:

• Mixing (1/60 DLH at $12.70 per DLH): $0.2117
• Baking (7/60 DLH at $19 per DLH): $2.2333

Adding these amounts gives us a total labor cost of $2.445 per pound.

The variable overhead rate applied at $35.80 per DLH and the fixed overhead rate at $60 per DLH over the total 8 minutes (or 8/60 DLH) of labor result in:

• Variable overhead: (8/60) * $35.80 = $4.7733
• Fixed overhead: (8/60) * $60 = $8

Adding these amounts gives us a total overhead cost of $12.7733 per pound.

Therefore, the total standard cost per pound of cookies is the sum of the materials cost, labor cost, and overhead cost: $3.50 + $2.445 + $12.7733 = $18.7183.