Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the company’s products, the Empire Truffle. This product is made with the finest white chocolate and various fillings. The data below pertain only to the white chocolate used in the product (the currency is stated in pounds denoted here as £):

Required:

1.         Determine the standard price of a kilogram of white chocolate.

2.         Determine the standard quantity of white chocolate for a dozen truffles.

3.         Determine the standard cost of the white chocolate in a dozen truffles.

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0.70 kilograms 0.03 kilograms Material requirements, kilograms of white chocolate per dozen truffles Allowance for waste, kilograms of white chocolate per dozen truffles Allowance for rejects, kilograms of white chocolate per dozen truffles Purchase price, finest grade white chocolate 0.02 kilograms £7.50 per kilogram 8% of purchase price £0.30 per kilogram £0.04 per kilogram Purchase discount Shipping cost from the supplier in Belgium Receiving and handling cost