Page 10 of 25 3. Yummy Bakery makes a variety of brownies for upscale restaurant

Question

Page 10 of 25 3. Yummy Bakery makes a variety of brownies for upscale restaurants in the Jacksonville area. The company's best-selling brownie is the fudge deluxe. The company's recipe requires 12 ounces of flour, 8 ounces of fudge, and 1 ounce of walnuts per batch. The standard direct materials costs are $0.80 per pound of flour $6.00 per pound of chocolate, and $7.60 per pound of walnuts. The brownies require 6 minutes of direct labor for mixing and 3 minutes of direct labor for baking. The standard labor rates in those departments are $12.00 per DLH and $13.00 per DLH, respectively. Variable overhead is applied at a rate of $0.30 per brownie. Fixed overhead is applied at a rate of $0.23 per brownie. How much is the standard direct material cost of the fudge deluxe?

Explanation / Answer

Standard direct material cost of fudge deluxe = (0.8/16*12)+(6/16*8)+(7.6/16*1)= 4.075

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