Question

Jessica’s Bakery makes desserts for local restaurants. Each pan of gourmet brownies re-quires 3 cups flour, 1/ 2 cup chopped pecans, 1/ 4 cup cocoa, 2 cups sugar, 1/ 2 cup chocolate chips, 2 eggs, and 1/ 3 cup oil. Each pan requires 15 minutes of direct labor for mixing, cutting, and packaging. Each pan must bake for 30 minutes. Restaurants purchase the gourmet brownies by the pan, not by the individual serving. Each pan is currently sold for $ 14. Standard costs are $ 1.92 per bag of flour (16 cups in a bag), $ 6.00 per bag of pecans (3 cups per bag), $ 3.72 per tin of cocoa ( 3 cups per tin), $ 1.20 per bag of sugar ( 12 cups in a bag), $ 2.40 per bag of chocolate chips ( 3 cups per bag), $ 1.20 per dozen eggs, $ 1.44 per bottle of oil ( 6 cups per bottle), and $ 0.60 for packaging materials. The standard wage rate is $ 9 per hour. The company allocates bakery overhead at $ 5.00 per oven hour.

Requirements
1. What is the standard cost per pan of gourmet brownies?
2. What is the standard gross profit per pan of gourmet brownies?
3. How often should the company reassess standard quantities and standard prices for inputs?



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  • CreatedAugust 27, 2014
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