Question

sally's chocolate company makes gourmet cupcakes which are sold by the dozen. compute the standard cost for one dozen cupcakes, based on the following standards: standard materials quantity: 4.25 cups of ingredients at $0.56 per cup standard labor: 1.10 hours at $8.30 per hour factory overhead: $3.80 per direct labor hour round your answer to two decimal places. total standard cost $fill in the blank 1

Answer 1

The total standard cost is $15.69.

According to the scenario, the computation of the given data is as follows:-

We can calculate the cupcake sold by the dozen by using the following formula:-

Cost for a dozen cupcakes = Direct material  + Direct labor + Factory OH

Where,

Direct material = 4.25 × $0.56 = $2.38

Direct labor = 1.10 × $8.30 = $9.13

Factory overhead = 1.10 × $3.80 = $4.18

By putting the value in the formula, we get

= $2.38 + $9.13 + $4.18

= $15.69

Here's an easy fashionable costing example. allow's take an enterprise that makes widgets. based totally on historic statistics, a cost analyst determines that producing one widget commonly calls for 1 pound of raw material costing $2 greenbacks and 1 hour of labor costing $20 bucks.

A standard cost is the budgeted cost of an everyday production procedure in opposition to which real expenses are compared. Of path, if a new product, carrier, or technique is to be achieved, the initial popular fees will be anticipated.

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