Coronado'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. Coronado's recipe requires 80 ounces of a commercial cookie mix, 7 ounces of milk chocolate, and 8 ounces of almonds per pound of cookies. The standard direct materials costs are $1.20 per pound of cookie mix, $12.00 per pound of milk chocolate, and $11.00 per pound of almonds. Each pound of cookies requires 2 minutes of direct labor in the mixing department and 3 minutes of direct labor in the baking department. The standard labor rates in those departments are $15.00 per direct labor hour (DLH) and $20.00 per DLH, respectively. Variable overhead is applied at a rate of $36.00 per DLH; fixed overhead is applied at a rate of $42.00 per DLH. Calculate the standard cost for a pound of Coronado's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)

Coronado'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. Coronado's recipe requires 80 ounces of a commercial cookie mix, 7 ounces of milk chocolate, and 8 ounces of almonds per pound of cookies. The standard direct materials costs are $1.20 per pound of cookie mix, $12.00 per pound of milk chocolate, and $11.00 per pound of almonds. Each pound of cookies requires 2 minutes of direct labor in the mixing department and 3 minutes of direct labor in the baking department. The standard labor rates in those departments are $15.00 per direct labor hour (DLH) and $20.00 per DLH, respectively. Variable overhead is applied at a rate of $36.00 per DLH; fixed overhead is applied at a rate of $42.00 per DLH. Calculate the standard cost for a pound of Coronado's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)

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Description: Coronado's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlantametropolitan area. The company's best-selling cookie is the double chocolate almond supreme.Coronado's recipe requires 80 ounces of a commercial cookie mix

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9PA: Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to...

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Coronado'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. Coronado'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 $12 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 2 minutes of direct labor in the baking department. The standard labor rates in those departments are $17.60 per direct labor hour (DLH) and $28 per DLH, respectively. Variable overhead is applied at a rate of $34.20 per DLH; fixed overhead is applied at a rate of $60 per DLH.Calculate the standard cost for a pound of Coronado's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.) Standard cost per pound $
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Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of 52 per case (a case contains 24 cans of nuts). Kaune sold 150,000 cases last year to the following three classes of customer: The supermarkets require special labeling on each can costing 0.04 per can. They order through electronic data interchange (EDI), which costs Kaune about 61,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs 45,000 per year. The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds 25 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 8 percent of sales. Bad debts expense amounts to 9 percent of sales. Convenience stores also require special handling that costs 30 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of 15,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of 30,000 per year. Required: 1. Calculate the total cost per case for each of the three customer classes. (Round unit costs to four significant digits.) 2. Using the costs from Requirement 1, calculate the profit per case per customer class. Does the cost analysis support the charging of different prices? Why or why not? 3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages?
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