# Question: Rachel s Bakery makes desserts for local restaurants Each pan of

Rachel’s Bakery makes desserts for local restaurants. Each pan of gourmet bars requires 2 cups of flour, 1/ 2 cup chopped pecans, 1/ 4 cup cocoa, 1 cup sugar, 1/ 2 cup chocolate chips, 2 eggs, and 1/ 3 cup oil. Each pan requires 10 minutes of direct labor 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 \$ 13. Standard costs are as follows: \$ 2.24 per bag of flour ( 16 cups in a bag), \$ 4.00 per bag of pecans ( 4 cups per bag), \$ 3.20 per tin of cocoa ( 2 cups per tin), \$ 2.20 per bag of sugar ( 11 cups in a bag), \$ 2.80 per bag of chocolate chips ( 4 cups per bag), \$ 1.68 per dozen eggs, \$ 1.68 per bottle of oil ( 8 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 bars?
2. What is the standard gross profit per pan of gourmet bars?
3. How often should the company reassess standard quantities and standard prices for inputs?

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