Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/2 pound of mixed berries, which are expected to cost $6 per pound during the summer months. Shop employees are paid $6 per hour. Variable overhead consists of utilities and supplies. The variable overhead rate is $0.11 per minute of DL time. Each smoothie should require 3 minutes of DL time.

1. What is the standard cost of direct materials for each smoothie?

2. What is the standard cost of direct labor for each smoothie?

3. What is the standard cost of variable overhead for each smoothie?

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