# Managerial Accounting: E5-6 Mama Fran's Bakery makes a variety of home-style cookies

**Managerial Accounting**

**E5-6 Calculating standard product cost**

Mama Fran's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme.

Mama Fran's recipe requires 10 ounces of a commercial cookie mix, 5 ounces of milk chocolate, and 1 ounce of almonds per pound of cookies. The standard direct materials costs are $0.80 per pound of cookie mix, $4.00 per pound of milk chocolate, and $12.00 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 2 minutes of direct labor in the baking department. The standard labor rates in those departments are $14.40 per direct labor hour (DLH) and $18.00 per DLH, respectively.

Variable overhead is applied at a rate of $32.40 per DLH; fixed overhead is applied at a rate of $60.00 per DLH.Required

Calculate the standard cost for a pound of Mama Fran's double chocolate almond supreme cookies.

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