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Sheffield'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. Sheffield'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, $4 per pound of milk chocolate, and $19 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department. The standard labor rates in those departments are $12.70 per direct labor hour (DLH) and $27 per DLH, respectively. Variable overhead is applied at a rate of $37.00 per DLH; fixed overhead is applied at a rate of $60 per DLH.
Required:
1. Calculate the standard cost for a pound of Sheffield's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)

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Answer:

The Standard cost for a pound  of Sheffield's double chocolate almond supreme cookies is $15.10

Explanation:

The standard direct materials costs are $0.80 per pound of cookie mix, $4 per pound of milk chocolate, and $19 per pound of almonds.

Total ounces = 10 + 5 + 1  = 16

Standard Material Cost = ([tex]\frac{10}{16}[/tex] × 0.80) + ([tex]\frac{5}{16}[/tex] × 4) + ([tex]\frac{1}{16}[/tex] × 19)

Standard Material Cost = $ 2.9375

Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department.

Standard Direct Labor Cost = [tex]\frac{1}{60}[/tex] × 12.70 + [tex]\frac{5}{60}[/tex] × 27

Standard Direct Labor Cost = $2.4617

Variable overhead is applied at a rate of $37.00 per direct labor hour

Standard Variable overhead cost = 6/60 × 37

Standard Variable overhead cost = $ 3.70

Standard Fixed overhead cost = 6/60 × 60

Standard Fixed overhead cost = $ 6

Standard cost for a pound = $2.9375 + $2.4617 + $3.70 + $6

Standard cost for a pound = $15.10

marvineetesh3

The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies in the above case is $15.10.

What is the standard cost?

A standard cost is defined as an anticipated cost that a company commonly launches at the starting of a fiscal year for amounts used and prices paid.

It is an anticipated amount of money to pay off for materials costs or labor rates. The standard quantity is the anticipated exercise amount of materials or labor.

Computation of standard cost:

According to the given information,

Standard direct materials costs = $0.80 per pound of cookie mix.

Per pound of milk chocolate =  $4, and

Per pound of almonds = $19.

Total ounces:

[tex]\text{Total Ounce} = \text{Commercial cookies Mix+ Milk Chocolate+Almonds}\\\\\text{Total Ounce} = 10 + 5 + 1\\\\\text{Total Ounce} = 16[/tex]

Then, Standard Material Cost:

[tex]=(\dfrac{10}{16}\times 0.80)+(\dfrac{5}{16}\times4) +(\dfrac{1}{16} \times 19)\\\\=2.9375[/tex]

Now, 1 minute of direct labor is required in the mixing department and 5 minutes of direct labor in the baking department. Then the standard direct labor cost is:

[tex]\text{Standard Direct Labor Cost} = (\dfrac{1}{60}\times 12.70) +(\dfrac{5}{60} \times 27)\\\\\text{Standard Direct Labor Cost} = \$2.4617[/tex]

Variable overhead is applied at a rate = $37.00 per direct labor hour

Now, find the value of Standard Variable overhead cost:

[tex]\text{Standard Variable Overhead Cost} = \dfrac{6}{60}\times 37\\\\\text{Standard Variable Overhead Cost} =\$3.70[/tex]

Now, Standard Fixed overhead cost:

[tex]\text{Standard Fixed Overhead Cost} = \dfrac{6}{60}\times 60\\\\\text{Standard Fixed Overhead Cost} =\$6[/tex]

Therefore, Standard cost for a pound:

[tex]=\text{ Standard Direct Labor Cost}+\text{Standard Variable Overhead Cost}+\text{ Fixed Overhead Cost}\\\\=\$2.9375 + \$2.4617 + \$3.70 + \$6\\\\=\$15.10[/tex]

Therefore, Standard cost for a pound is $15.10.

To learn more about the standard cost, refer to:

https://brainly.com/question/4557688

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