Question

Barrie’s Bakery makes desserts for local restaurants. Each pan of gourmet bars requires 750 g of flour, 125 mL chopped pecans, 60 mL cocoa, 250 g sugar, 125 mL chocolate chips, 3 eggs, and 85 mL oil. Each pan requires 15 minutes of direct labour for mixing, cutting, and packaging. Each pan must bake for 30 minutes. Restaurants purchase the gourmet bars by the pan, not by the individual serving. Each pan is currently sold for $12. Standard costs are as follows: $1.60 per bag of flour (4 kg in a bag); $3.00 per bag of pecans (750 mL per bag); $4.38 per tin of cocoa (750 mL per tin); $3.00 per bag of sugar (3.75 kg in a bag); $1.80 per bag of chocolate chips (500 mL per bag); $0.84 per dozen eggs; $1.65 per bottle of oil (2 L per bottle); and $0.60 for packaging materials. The standard wage rate is $15 per hour. Barrie’s Bakery allocates bakery overhead at $5.00 per oven hour.
Requirements
1. What is the standard cost per pan of gourmet bars?
2. What is the standard gross profit per pan of gourmet bars?
3. How often should Barrie’s Bakery reassess the standard quantities and standard prices for inputs?


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  • CreatedApril 30, 2015
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