Danny's Delights Is a Wholesale Bakery

Essay

Danny's Delights is a wholesale bakery.Danny makes a variety of baked goods which he sells to restaurants and grocery stores.His best-selling item is a peanut butter cookie.The recipe calls for 1 cup of peanut butter, 1 cup of sugar and 1 egg.Each recipe makes a batch of one dozen cookies.Danny's standard direct materials cost for batch of cookies is $0.90 for peanut butter, $0.15 for sugar and $0.10 for an egg.In addition, the cookies are packaged by the dozen in cardboard containers costing $0.25 each.One batch of cookies requires 4 minutes preparation time, 8 minutes of cooking time, and 3 minutes of packaging time.The standard wage rate is $15 per hour.Overhead is applied at 50% of direct labor cost.
Required:
Calculate the standard cost for a batch (1 dozen) of peanut butter cookies.